Tickets to the Indiana-Purdue basketball game are usually sold out far in advance of game day and many people are disappointed because they cannot see the game. This suggests
a. the price of the tickets must be higher than the equilibrium price because people consider them valuable
b. the price is set below the equilibrium level
c. the price is set above the equilibrium level
d. there is no excess demand or supply
e. the people deciding on what price to charge considered only the fixed capacity of the stadium
B
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Suppose a farmer is a price taker in soybeans with cost functions given by TC = .1q2 + 2q + 30 MC = .2q + 2 Suppose the farmer has to purchase a license for $50 per period in order to stay in business. In this case, its new total cost function is
a. still TC = .1q2 + 2 b. TC = .1q2 + .2q + 80 c. TC = .1q2 + 2q + 50 d. TC = 50
An economic variable that doesn't move in a consistent pattern with aggregate economic activity is called
A. procyclical. B. countercyclical. C. acyclical. D. a leading variable.
In order for it to produce at point E (unattainable above the demand curve), the
a. country would need to acquire more resources and or more advanced technology b. country would need to use its resources more efficiently c. country would need to determine that compact cars and SUVs are equally important to it d. production of SUVs would need to decrease e. production of compact cars would need to decrease
Perfectly competitive markets are characterized by:
a. a small number of very large producers. b. very strong barriers to entry and exit. c. firms selling a homogeneous product. d. all of these.