Suppose that no externalities are generated by the production of chickens. If the price of chickens is equal to private marginal cost of producing chickens, then
a. that price is lower than the price associated with an efficient allocation of resources
b. that price is higher than the price associated with an efficient allocation of resources
c. that price is precisely the price associated with an efficient allocation of resources
d. less than an efficient quantity is being produced
e. more than an efficient quantity is being produced
C
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Which of the following is NOT an example of a good with an external cost?
A) electricity generation producing carbon dioxide emissions that contribute toward global warming B) logging that pollutes a nearby river C) Jess smoking near her non-smoking roommate D) Ahmed working at a bank and getting a flu shot each fall E) noise pollution from aircraft
Risk that is related to the uncertainty about interest rate movements is called
A) default risk. B) interest-rate risk. C) the problem of moral hazard. D) security risk.
A sustained decrease in an economy's price level is known as deflation
a. True b. False Indicate whether the statement is true or false
A semiprofessional baseball team near your town plays two home games each month at the local baseball park. They split the concessions 50/50 with the city, but keep revenue from ticket sales for themselves. The city charges the team $100 each month for the three-month season. The team pays the players and manager a total of $1,000 a month. The team charges $10 for each ticket, and the average customer spends $7 at the concession stand. Attendance averages 30 people at each home game.In order to break even, how many tickets does the team need to sell for each game?
a. 33 b. 37 c. 41 d. 45