You can buy a season ticket to the Metropolitan Opera for 800. A season ticket plan to see the New York Knicks is 1600. Which of the following is a CORRECT statement?
A) The money price of opera tickets is 1/2 of a Knicks ticket per opera ticket.
B) The opportunity cost of a Knicks ticket is 2 opera tickets per Knicks ticket.
C) The relative price of an opera ticket is 800.
D) the money price of a Knicks ticket is 2 opera tickets per Knicks ticket.
Question 2
Positive externalities and high transaction costs make voluntary social cooperation difficult because they
A) are also obstacles to the effective working of democratically controlled governments.
B) can be eliminated by government.
C) can best be reduced by abandoning persuasion and voluntary cooperation.
D) make government intervention necessary.
E) make it easier for cartels to operate effectively.
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