With tickets free and the show to be held in the 1,500-seat Detroit theater, what is free and what is scarce? Explain your answer
What will be an ideal response?
The seats in the concert are scarce—there are only a limited number (1,500) available. Also scarce is the time the enthusiastic fans spent in line to acquire the tickets. The publicity that Eminem received is not free to him because he paid for the theater, hauling equipment to the theater, and so on.
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Suppose that, at a given level of disposable income, consumers decide to save more. Explain what effect this decision will have on equilibrium income. Also, explain what effect this decision will have on the level of saving once the economy has reached the new equilibrium
What will be an ideal response?
The United States represents a pure command system, with government directly accounting for a little more than one-half of all economic activity
Indicate whether the statement is true or false