Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, tickets cost $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. Ingrid decides to try to buy a ticket from a scalper (a person who purchased extra tickets at the box office with the intent to resell them at a higher price). If Ingrid finds someone who is willing to sell her a ticket for $70, she should:
A. purchase the ticket because doing so will make her $5 better off.
B. purchase the ticket even though doing reduce total economic surplus.
C. not purchase the ticket because it is overpriced.
D. not purchase the ticket because the cost to the scalper was only $60.
Answer: A
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The bowed outward shape of the production possibilities frontier in the above figure indicates that
A) some resources are better suited for producing computers. B) the opportunity cost of producing more computers decreases as more computers are produced. C) computer technology is subject to the principle of decreasing costs. D) All of the above answers are correct.
Left unregulated, the equilibrium amount produced in the market described in the table above is
A) 550 units. B) 600 units. C) 650 units. D) 700 units.
An increase in the supply of dollars on the foreign exchange market, all else equal, will result in:
A) appreciation of the U.S. dollar and depreciation of the foreign currency. B) appreciation of the U.S. dollar and appreciation of the foreign currency. C) depreciation of the U.S. dollar and depreciation of the foreign currency. D) depreciation of the U.S. dollar and appreciation of the foreign currency.
In October 2008, Congress passed the Troubled Asset Relief Program (TARP), under which the Treasury provided ________ to banks in exchange for ________
A) bonds; cash B) lines of credit; loan guarantees C) funds; stock D) financial advice; promises to expand mortgage lending