A college has found that during every home football game, a group of students sits on a hillside next to the stadium and watches the game without purchasing tickets. In economics, the problem that this college is facing is referred to as a
a. common good problem.
b. free rider problem.
c. onlooker problem.
d. deadweight loss problem.
B
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Fixed costs are:
A. costs that depend on the quantity of output produced. B. inputs costs that stay the same price per unit. C. costs that don't depend on the quantity of output produced. D. costs that are negotiated to stay the same throughout the life of a contract.
Assume that there is an unexpected increase in the demand for U.S. dollars in Switzerland. If the foreign currency price of the U.S. dollar is fixed, the U.S. Federal Reserve must intervene in the foreign exchange market such that:
a. the supply of U.S. dollars increases. b. the U.S. demand for the Swiss franc falls. c. the supply of U.S. dollars decreases. d. Swiss imports from the United States are reduced. e. the Swiss currency is devalued.
If the prices of domestic consumer goods increased while the prices of imported consumer goods decreased, and the demand for each remained the same, which of the following would most likely occur?
a. The GDP price index would decrease while the CPI would increase. b. Both the GDP price index and the CPI would decrease. c. The GDP price index would increase more than the CPI. d. The CPI would increase more than the GDP price index. e. Both the GDP price index and the CPI would increase by the same amount.
The market structure in which there is only one producer is called
a. monopoly b. oligopoly c. monopolistic competition d. perfect competition e. duopoly