A music venue discovers that its concerts consistently have empty seats in the back rows of the facility. If the venue owner uses marginal analysis to evaluate this situation, he should
A. raise the price of seats in the front rows.
B. remove the last few rows.
C. lower the ticket price for the seats on the back rows.
D. cancel concerts that are not sellouts.
E. book acts that are less expensive.
Answer: C
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Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the
A) demand for hot dogs increases. B) demand for hot dogs decreases. C) quantity of hot dogs demanded increases. D) quantity of hot dogs demanded decreases. E) More information is needed to determine if the demand increases or decreases.
Which of the following is a positive statement?
A) Taxes should be lower because then people get to keep more of what they earn. B) My economics class should last for two terms because it is my favorite class. C) A 10 percent increase in income leads to a 4 percent increase in the consumption of beef. D) Given their negative impact on productivity, the government should eliminate labor unions.
Jessica paid $7,000 for a bond with a face value of $6,000. She will be paid $400 annually as long as she holds on to the bond, until the bond's maturity date. The yield on the bond is
A) 6.67 percent. B) 5.71 percent. C) 15.0 percent. D) 80.0 percent.
Recessionary gaps are associated with output below potential and high unemployment rates.
Answer the following statement true (T) or false (F)