If the income elasticity of demand for a Miami Dolphins season ticket is 2.34, then are Dolphins season tickets a normal or an inferior good?
What will be an ideal response?
Because the income elasticity of demand is positive, Dolphins season tickets are a normal good.
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External costs are
a. negative externalities and are subtracted from marginal private costs to find marginal social costs. b. negative externalities and are added to marginal private costs to find marginal social costs. c. positive externalities and are added to marginal private costs to find marginal social costs. d. positive externalities and are subtracted from marginal private costs to find marginal social costs.
The interest rate that banks charge other banks for loans is the
A) discount rate. B) prime rate. C) federal funds rate. D) Treasury bill rate.
Following the downgrade of U.S. debt by Standard & Poor's in August, 2011:
A) other rating agencies also downgraded U.S. debt B) interest rates spiked as investor's perception of risk increased C) investors didn't seem to be any more concerned about default risk than before the downgrade D) the U.S. implemented a plan to significantly reduce its budget deficit later that year
If firms have different costs and market demand only supports the quantity the incumbent produces, then the incumbent's threat to use limit pricing
A) is credible. B) is not credible. C) would be illegal. D) is unable to be determined with the information given.