Why would a radio station give money to listeners? Does this violate the economic way of thinking?
Radio stations do surveys to see what types of prizes listeners want (for example, cars, boats, vacations, etc.). Overwhelmingly, people say they want cash. A radio station that gives away money attracts listeners, and the more listeners a station has, the more it can charge advertisers. The owners of the radio station clearly believe the revenue this activity generates, in terms of advertising dollars, exceeds the money given away.
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A local flower grower grows products in a plot of land, which is exceptionally colorful and is admired by many passersby. There is no way to charge for this in the price of the flowers. We can safely conclude that
A. the florist produces too many flowers. B. the florist produces too few flowers. C. the florist produces the right amount of flowers. D. society pays the socially optimal amount for the flowers.
If real GDP is $11,750 billion and aggregate hours are 175 billion, labor productivity equals
A) $23.50 per hour. B) $52 per hour. C) $67 per hour. D) $235 per hour.
Macroeconomics stresses
A. resource allocation and income distribution. B. inflation and unemployment. C. resource allocation and inflation. D. unemployment and income distribution.
Which of the following is true about the market equilibrium? a. As the price increases, the quantity demanded and the quantity supplied increases. b. As the price increases, the quantity demanded and the quantity supplied decreases. c. As the price increases, the quantity demanded increases and the quantity supplied decreases
d. As the price increases, the quantity demanded decreases and the quantity supplied increases. e. As the price increases, neither the quantity demanded nor quantity supplied change.