A promoter might charge less than the profit maximizing ticket price because
A. the talent may want to create a reputation for charging fair price so as to get more in the future.
B. he believes his own "hype" about the demand for the event.
C. he knows that the cost of constructing the facility is a "sunk cost" and must be ignored.
D. all of the options are correct.
Answer: A
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When consumption spending is greater than disposable income, we know with certainty that we have
A) dissaving. B) negative net investment. C) excess thrift. D) positive savings.
A characteristic of a public good is that a public good is provided
A) to some businesses, but not to others. B) only in some states. C) to low income residents in some states. D) to many individuals at no additional cost.
If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns to scale, productivity would
a. fall to less than one-half of its former value. b. fall, but it would still be greater than one-half of its former value. c. stay the same. d. rise but less than double.
For a given level of inflation, if a rise in the stock market makes consumers more willing to spend, known as the wealth effect, then the ________ shifts ________.
A. short-run aggregate supply line; downward B. aggregate demand curve; right C. aggregate demand curve; left D. short-run aggregate supply line; upward