If a scalper for the Super Bowl is able to charge $5,000 for a front-row seat, this suggests that
A) at the regular price, there is a surplus of Super Bowl tickets.
B) at the regular price, there is a shortage of Super Bowl tickets.
C) at the regular price, the quantity of Super Bowl tickets demanded equals the quantity supplied.
D) the scalper is making the football fan worse off.
Answer: B
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c. marginal analysis. d. average analysis.
When the actual inflation rate exceeds the expected inflation rate due to changes in aggregate demand:
a. Unemployment is below the natural rate of unemployment b. Unemployment is above the natural rate of unemployment. c. Unemployment equals the natural rate of unemployment. d. Unemployment could be above, equal to, or below the natural rate of unemployment.
Which of the following is a term referring to unemployment that occurs because individuals lack skills valued by employers?
a. cyclical unemployment b. underemployment c. natural unemployment. d. structural unemployment
On January 1, 2008, Edward invested $10,000 at 5 percent interest for one year. The CPI on January 1, 2008 stood at 1.60. On January 1, 2009, the CPI was 1.76. The real rate of interest earned by Edward was ________ percent.
A. 5 B. -5 C. 10 D. 0