Is your economics textbook a public or private good? If you conclude that it is a private good, why do we have copyright laws?
To a student, the book seems close to a pure private good--once purchased, the owner has complete excludability. The public goods problem arises over the author's rights. Without copyright laws, he cannot prevent others from copying the book and selling the copies. Information in the book has the characteristic of nonrivalry-in-consumption, and even with copyright laws, it is difficult to prevent those who do not pay the author from consuming information.
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Suppliers will be willing to supply a product only if
A) the price received is at least equal to the additional cost of producing the product. B) the price is higher than the average cost of producing the product. C) the price received is at least double the additional cost of producing the product. D) the price received is less than the additional cost of producing the product.
Leontief's results can be interpreted as
A) evidence against the classical model. B) evidence against the Heckscher-Ohlin model. C) support for the classical model. D) support for the Heckscher-Ohlin model.
The peak phase of the business cycle represents
A) a temporary maximum output level of Gross Domestic Product (GDP). B) an increase in foreign investment. C) a labor surplus. D) falling prices.
A movement up along a short run Phillips Curve to an unemployment rate below the natural rate of unemployment will tend to shift the Phillips Curve up, once expectations adjust; a movement down along a short run Phillips Curve to an unemployment rate above the natural rate of unemployment will tend to shift the Phillips Curve down once expectations adjust
a. True b. False Indicate whether the statement is true or false