The town of Harmonia gives away all 500 tickets to its annual Founder's Day Free Concert-in-the-Park to local residents
Each year, more than 500 people wish to attend the concert, so some of the residents who receive the free tickets sell them for as much as $75 each. Is a transaction where someone pays a resident $75 for a "free ticket" economically efficient?
A) Yes, it was a voluntary exchange that benefited both parties.
B) No, the buyer paid too much for the ticket.
C) No, people should never be allowed to sell items they received for free.
D) Yes, but it is efficient only from the perspective of the seller and not from the perspective of the buyer.
A
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If the price of a pizza were to increase to $50, many people would give up eating pizza while others would continue to eat it. This would indicate
A) those who are buying pizza value it at least $50 per pizza. B) those who are not buying pizza value it more than $50 per pizza. C) only those who are extremely wealthy are buying pizza. D) the price of pizza needs to be regulated by the federal government.
The owner of each share of a corporation's stock:
a. has the right to cast one vote for electing its board of directors. b. is entitled to 1 percent of the total profit earned by the firm. c. has the right to participate in its overall supervision. d. is liable for 1 percent of the total loss incurred by the company.