Hammons Center Case Study

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Hammons Center Case Study
1. During a concert at Hammons Center, a large number of patrons decided to leave 20 minutes early to avoid traffic congestion getting away from campus to late evening "study" spots. Due to the large number involved in the exodus, there was considerable congestion in the parking area before the concert was over. This occurrence depicts which of the following?
a. Murphy's Law
b. post hoc fallacy
c. law of diminishing returns
* d. fallacy of composition
e. law of increasing costs

2. An editor of a local newspaper called for the government to abolish the minimum wage because it takes advantage of consumers. This is an example of:
a. a positive economic statement
b. a pure economic statement
c. an exogenous use of economics
* d. a normative
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if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of other goods to do so

7. If the price of product L increases, the demand curve for a close substitute product M will:
a. remain unchanged
* b. shift to the right
c. shift to the left
d. none of the above

8. Other things being unchanged, a decrease in the supply of X might be caused by:
a. an improvement in the technology for producing X
b. an increase in the number of firms producing X
c. a decline in the price of the basic raw material used in producing X
d. a government subsidy per unit of output, paid to firms producing X
* e. an increase in the wages paid to laborers employed in the production of X

9. The demand for parking spaces on this campus is very high. If we were to raise the price of a parking sticker, we would decrease the demand. This statement:
a. confuses a change in quantity demanded with a movement along the demand curve
b. is correct as stated
c. confuses the determinants of demand with the determinants of supply
* d. confuses a change in quantity demanded with a change in demand

10. With an increase in profits in a particular industry, we might expect
a. firms to leave the industry
b. firms to produce

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