Final Exam Prep Questions for Econ 295

1. How many different cost types exist and how are they computed?
   

2. What are characteristics of the markets in the performing arts?
   

3. What is unique about the nature of costs in the performing arts? How does this effect pricing if the firm is (i) a for-profit organization and (ii) not-for-profit organization?
   

4. What are the sources of growth in physical output per work hour? Which one of them is effective for the live performing arts?
   

5. What are some of the offsets to the problem of productivity lags in the performing arts?
   

6. How do social scientists such as Edward Barfield and Leslie Singer define art?
   

7. What types of costs are particularly important to understanding the functioning of art markets?
   

8. Describe the nature and functioning of the primary market and the secondary market for visual arts?
   

9. What is an art auction? How does it function? What is meant by "hammered down" or "bought in" in the context of an art auction?
   

10. Write short notes on why households consider acquiring art works?
    

11. What are the different functions of museums? Which is the most important function and why?
    

12. Please explain why museums would be regarded as a decreasing cost industry? Do you think a museum is justified in charging higher entrance fees for "blockbuster" events?
    

13. What are some of the economists' suggestions for managing a museum's collection or for improving distribution of art works among big, medium, and small museums?
    

14. What is market failure and how does it relate to the art sector?
    

15. How does censorship relate to public support for the arts? What lessons can the artist learn?
    

16. What are some of the assumptions regarding the functioning of a free labor market for artists? How does the presence of labor unions affect the working of the labor market for artists?
    

17. What are some of the positive externalities or spillovers associate with the art sector that would justify public support? Are there other ways of achieving the same ends?