Tickets to the Michigan-Notre Dame football game are usually sold out in advance of game day. This suggests that
a. the price of the tickets must be very high or else people would not consider them valuable
b. the price is set below the equilibrium level
c. the football stadium is relatively small
d. everyone who attends the game will enjoy it
e. the price is determined primarily by the fixed supply of tickets
B
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Suppose the exchange rate of the U.S. dollar was 1.00 euro = $0.50 on Thursday, and on Friday the exchange rate was $1.00 = 2.10 euros. Which of the following best explains what has happened between Thursday and Friday?
A) The U.S. dollar appreciated against the euro. B) The euro appreciated against the U.S. dollar. C) The U.S. dollar depreciated against the euro. D) Both answers B and C are correct.
When private ownership rights are well-defined and enforced, owners of physical assets and resources
a. have no incentive to consider the desires of others. b. incur the opportunity cost of ignoring the wishes of others. c. are not responsible if the use of their assets impose harm on others. d. have little incentive to take care of their assets.
Prices enable a market economy to adjust to unexpected events by
a. maintaining consumption and production at stable levels. b. government rationing. c. ensuring that producers always earn a profit. d. adjusting consumption and production.
Suppose a typical household holds $500 when the interest rate is 2 percent. When the interest rate rises to 3 percent, the household would most likely hold
A. more money because the opportunity cost of holding money is lower. B. more money because the opportunity cost of holding money is higher. C. less money because the opportunity cost of holding money is lower. D. less money because the opportunity cost of holding money is higher.