Which of the following results in the superstar effect?
a. An increase in the minimum wage for sports stars
b. A decrease in the demand for televisions
c. A technological improvement due to which a baseball game can be broadcast across the world
d. A rise in the unemployment rate in the service sector of an economy
e. A decline in the returns to capital in an economy
c
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Which of the following statements is true of economic growth?
A) Countries with inclusive institutions are likely to grow faster than countries with extractive institutions. B) In comparison to countries with extractive institutions, economic growth in countries with inclusive institutions is more likely to stagnate in the long run. C) Countries with extractive institutions are likely to grow faster than countries with inclusive institutions. D) Countries with extractive institutions are likely to grow at the same rate as countries with inclusive institution.
Diffusion of responsibility exists when
A) the members of a group believe one thing but mistakenly assume that most of the other members believe something else. B) a group of bystanders all agree that something needs to be done but each feels less personal responsibility for taking action because each perceives that there are others who could take action. C) a majority of people in a group do not have the intellectual capacity of arriving at a viable solution to a public goods problem. D) the least-capable member of a group exerts his influence over the rest of the group when trying to arrive at a decision on how to internalize an externality.
A consumer is willing to purchase a product up to the point where
A) he spends all of his income. B) the marginal benefit is equal to the price of the product. C) he is indifferent between consuming and saving. D) the quantity demanded is equal to the quantity supplied.
Suppose that Greece and Portugal are both engaged in the production of grapes and figs, and that Greece has an absolute advantage in the production of both goods. If Portugal has a lower opportunity cost for producing figs, then
A. Greece has a comparative advantage in the production of both goods. B. Portugal has a comparative advantage in the production of figs, and specialization and trade between the two countries can be mutually beneficial. C. Portugal has a comparative advantage in the production of figs, but it is outweighed by Portugal's absolute advantage in fig production. D. Portugal has a comparative advantage in fig production, but there will be no gains from specialization and trade.