Suppose that a television studio has two shows, X and Z, and that tickets for viewing the taping of each show is free. The equilibrium price for a ticket to view the taping of show X is $25 and the equilibrium price for a ticket to view the taping of show B is -$20. It is likely that tickets to show ________ will need to be rationed on a first-come-first-served basis, while the producers of show
________ will have a much more difficult time filling the seats in the studio since the equilibrium price for tickets to that show is a __________ dollar amount.
A) Z; X; positive
B) Z; X; negative
C) X; Z; positive
D) X; Z; negative
D
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Using the production possibilities frontier model, unemployment is described as producing at a point
A) on the exact middle of the PPF curve. B) on either end of the PPF curve. C) inside the PPF curve. D) outside the PPF curve.
Which of the following statements is true?
A) An individual's future spending decreases when he lends money. B) An individual's future spending increases when he borrows money. C) An agent borrows to move his spending from the future to the present. D) An agent borrows to move his spending from the present to the future.
In the above figure, what would happen to the monopolistically competitive industry in the long run?
A) More producers would enter the market, and the share of the market to this firm would fall, which would cause the demand curve to shift leftward until there is zero economic profit. B) More producers would exit the market, and the share of the market to this firm would fall, which would cause the demand curve to shift leftward until there is zero economic profit. C) More producers would enter the market, and the share of the market to this firm would rise, which would cause the demand curve to shift rightward until there is zero economic profit. D) More producers would enter the market, and the share of the market to this firm would fall, which would cause the demand curve to shift leftward until there is negative economic profit.
All of the following might be considered rent-seeking behavior by firms, except one. Which is the exception?
a. bribes to government officials b. money spent on lobbying government officials c. advertisements describing the firm's position on an issue under legislative review d. money spent on advertising for new products e. time spent testifying before state and federal committees