Kyle receives two free passes to the symphony as a bonus at work. He has never been to the symphony before and would probably not buy such tickets for their face value of $120. Kyle decides to use the tickets rather than sell them at face value. This type of behavior is:
A. irrational, since Kyle would not pay $120 for the tickets, yet gives up $120 by not selling them.
B. rational, since Kyle can check out the symphony and not have to pay for it himself.
C. irrational, since Kyle ignores his sunk cost of $120.
D. rational, since Kyle does not ignore his sunk cost of $120.
A. irrational, since Kyle would not pay $120 for the tickets, yet gives up $120 by not selling them.
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A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Benjamin works as an economist for the federal government. Which of the following questions is he trying to answer as part of his job?
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Under a production quota policy, the government can maintain a particular support price by reducing the quantity supplied. To maintain a particular support price, how must the quota amount change if the demand curve becomes more elastic?
A) Quota amount increases B) Quota amount decreases C) Quota amount does not change D) Quota amount depends on the supply curve
A university should not disband its football team if it has already paid for the stadium
a. True b. False