Suppose, during the rapid expansion of NASCAR during the 1990s and 2000s, a racetrack owner kept expanding capacity to keep up with demand. Suppose further that fan interest in NASCAR diminished during the recession of 2007-2009. It would have been in that owner's best interest to reduce ticket prices sufficient to maintain a sellout.
Answer the following statement true (T) or false (F)
False
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An economy experiences a recessionary ga
A) falls, shifting the aggregate supply curve rightward. B) rises, shifting the aggregate supply curve leftward. C) rises, shifting the aggregate demand curve rightward. D) falls, shifting the aggregate demand curve leftward. E) falls, increasing potential GDP.
Which of the following is a possible result of price confusion?
A. People are less able to take actions that mitigate the impact of monetary policy. B. Sellers will face pressure to provide more accurate pricing information. C. The price system becomes a less effective way to coordinate economic action. D. The signals that prices send become clearer and more necessary.
Collusion is:
A. more likely in perfectly competitive markets. B. not affected by firm's ability to enter a market. C. more likely when the threat of market entry is missing. D. less likely when the threat of market entry is missing.
Suppose a consumer wants to obtain the highest possible satisfaction from goods purchased on a fixed budget. Which of the following must be equal for all goods?
A. Total utility. B. Marginal utility. C. Average utility. D. Marginal utility per dollar.