Refer to the above figure. Profits will equal zero
A. when the price equals $2.
B. when the price equals $4.
C. when the price equals $1.
D. at prices between $1 and $2.
Answer: A
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The causal link between money growth and inflation is most closely associated with
A) Jevons. B) Kiyotaki and Wright. C) Friedman and Schwartz. D) Diamond and Dybvig.
If inflation is higher than anticipated and benefits are not indexed, which group loses purchasing power?
a. Borrowers and lenders b. Lenders and retirees c. Borrowers and retirees d. Only borrowers e. Only lenders
The purpose of antitrust policy is to encourage competition in an industry.
Answer the following statement true (T) or false (F)
The number of seats available in a stadium is fixed at 80,000. The equilibrium price for a ticket to a football game at the stadium is $30. The equilibrium price for a ticket to a soccer match at the stadium is $10. Which of the following is true?
A. The demand for each football game must be more than the demand for each soccer match. B. The supply of soccer matches must be less elastic than the supply of football games. C. Football games must be more expensive to produce than a soccer match. D. The demand for each soccer game must be greater than the demand for each football game.