Suppose that 20,000 tickets were sold at 120 for an NBA game at Madison Square Garden in New York. The game was sold out and some fans could not get tickets. This suggests that
A) selling price was below equilibrium price.
B) selling price was above equilibrium price.
C) selling price was at equilibrium.
D) the game was advertised too heavily.
Ques. 2Capital goods
A) are a special type of consumption goods.
B) are consumed because they enhance the enjoyment consumers obtain from other goods and services.
C) are goods used to make consumer goods and services.
D) lead to inward shifts of a production possibilities curve.
Ques. 3The two economists associated with the development of the theory of monopolistic competition were
A) Joan Robinson and Edward Chamberlin.
B) David Hume and Adam Smith.
C) John Neville Keynes and John Maynard Keynes.
D) Carl Menger and Eugen Von Bohm-Bawerk.
Ques. 4Portfolio investment is defined as
A) the purchase of less than 40 percent of the shares of ownership in a company in another country.
B) the acquisition of more than 40 percent of the shares of ownership in a company in another country.
C) the diversification of purchasing shares in many companies in one country so that risk is kept to a minimum.
D) none of the above
Ques. 5The primary purpose of economic regulation of an industry is to
A) control the prices charged by the regulated industry.
B) increase taxes across the board.
C) reduce output.
D) control hiring and firing within the industry.
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