If the Boston Red Sox were playing the Chicago Cubs in the World Series and fans were willing to pay three times the face-value price for tickets, economists would suggest that a scalping market would appear, and it
A. would make all ticket holders and potential buyers worse off.
B. would make all ticket holders and potential buyers better off (or at least no worse off).
C. cause the price to fall back to the face value.
D. cause the price to fall below the face value.
Answer: B
You might also like to view...
If the Fed orders a contractionary monetary policy, describe what will happen to the following variables relative to what would have happened without the policy:
a. The money supply b. Interest rates c. Investment d. Consumption e. Net Exports f. The aggregate demand curve g. Real GDP h. The price level
R&D lab organization The key assets of Prescott Pharmaceuticals are its capable R&D scientists who generate and evaluate countless new chemical compounds for possible product profitability. They had structured their various laboratories based on the
diseases and patient classes the new drugs would treat, e.g., skin cancer, COPD, Irritable Bowel Syndrome. Recently, the scientific discoveries have made biologicals, or "large molecules," a much more promising avenue of treatment. However, the skills required to synthesize, produce, and evaluate biologicals are represented by more narrow and distinct fields of study. Scientists benefit greatly from sharing knowledge gained within their own field but they have few skills that span across these fields. How does this change affect Prescott's organization of its scientists?
Laura's team can complete 15 reports and 5 presentations in a day. Albert can motivate his team to complete 12 reports in a day with 10 presentations. Suppose the boss needs 30 reports with 20 presentations completed during a particular day. Assigning the extra presentations to Laura's team would:
a. lead to an efficient outcome. b. push the production level inside the production set. c. enhance the production level along the production set. d. increase the chances of achieving the target.
What is a potential drawback of a high degree of redistribution and too much taxation of the wealthy?
a. Discouraging entrepreneurship b. Expanding political and federal power c. Creating a progressive tax system d. Triggering more offshoring of jobs