If NASCAR Makes a Business Decision in Favor of One

question 13

Multiple Choice

If NASCAR makes a business decision in favor of one track rather than another, based upon the fact that the track it chooses is owned by the same family who owns NASCAR, rather than the overall profitability of the chosen track, economists will insist that

• A)this is simply a consequence of the family's monopoly power.
• B)competition will quickly lead to NASCAR's demise.
• C)this is what happens when there is significant economic competition in racing.
• D)monopoly does not really govern auto racing.

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Definitions:

Allocation of Resources

The process by which resources are distributed for the production of goods and services within an economy.

Market Equilibrium

A state in a market where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable price for the goods or services.

Production and Consumption

The processes of creating goods and services (production) and using them to satisfy needs and desires (consumption).

Holiday Lighting

The practice of installing lights and other decorative lighting during holidays; not inherently economic but can involve significant expenditure and economic activity.