Which of the following is TRUE of the activities of ticket scalpers?
A. These activities help reduce the quantities of excess tickets supplied for events in which ticket surpluses currently exist.
B. Engaging in these activities enable scalpers to push the price above the market clearing level.
C. Engaging in these activities enable scalpers to push the price below the market clearing level.
D. These activities cannot generate profits for the scalpers unless ticket prices are currently below market clearing levels.
Answer: D
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The real interest rate ________
A) is the cost of borrowing adjusted for inflation B) keeps the market for saving and investment in equilibrium C) describes the real benefit of saving D) all of the above E) none of the above
Suppose the Phillips curve is represented by the following equation: ?t - ?t-1 = 20 - 2ut. Given this information, which of the following is most likely to occur if the actual unemployment in any period is equal to 6%?
A) the rate of inflation will tend to increase B) the rate of inflation will be constant C) the rate of inflation will tend to decrease D) none of the above
A deadweight loss results from the imposition of a tax on a good because the tax
a. induces the government to increase its expenditures. b. reduces the quantity of exchanges between buyers and sellers. c. causes a disequilibrium in the market. d. imposes a loss on buyers that is greater than the loss to sellers.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.