If the New Orleans Saints were playing the Arizona Cardinals in the NFC final to determine who would play in the Super Bowl, and their fans were willing to pay three times the face-value price for tickets, economists would suggest that a scalping market would appear, and it
A. would make all ticket holders and potential buyers better off (or at least no worse off).
B. cause the price to fall back to the face value.
C. cause the price to fall below the face value.
D. would make all ticket holders and potential buyers worse off.
Answer: A
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When considering the velocity of money, the Federal Reserve is most concerned about its
A) stability. B) absolute size. C) determinants. D) sign.
A difference between the new classical and monetarist models is that expectations in the new classical model are _____ while they are _____ in the monetarist model
a. forward looking; backward looking. b. rational; adaptive. c. correct; mistaken. d. perfectly competitive; imperfectly competitive. e. both a and b.
The burden of a tax will fall primarily on sellers when the
a. demand for the product is highly inelastic and the supply is relatively elastic. b. demand for the product is highly elastic and the supply is relatively inelastic. c. tax is legally (statutorily) imposed on the seller of the product. d. tax is legally (statutorily) imposed on the buyer of the product.
The largest income component in the national income accounts is
A. wages. B. rents. C. corporate profits. D. interest.