Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: rachel9 on Jun 30, 2018
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Suppose the only professional hockey team within 500 miles is the Salt Lake City Slappers team. If the State of Utah imposes a profits tax on sports teams, the Slappers will
a. raise ticket prices
b. lower ticket prices to boost sales
c. maintain ticket prices and suffer a loss in profits
d. expand the number of home hockey games
e. reduce the number of home hockey games
Question 2
The capture theory of regulation, espoused by George Stigler, asserts that
a. consumers capture regulatory agencies so that regulation favors consumers
b. producers capture regulatory agencies so that regulation favors producers
c. regulators capture producers and limit their market power
d. consumers capture some consumer surplus lost to monopoly
e. consumers and producers work together to capture regulatory agencies in order to achieve more desirable regulation
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Answer to Question 1
C
Answer to Question 2
B