Distinguish among public goods, private goods, common resources, and natural monopoly goods
What will be an ideal response?
Public goods are nonexcludable and nonrival. As a result, anyone can consume the good whether or not he or she paid for it and one person's use of the good does not decrease the amount available for other people. Private goods are excludable and rival. As a result, only the person who pays for the good can consume it and one person's use decreases the amount available for others. Common resources are nonexcludable and rival. As a result, anyone can consume the good whether or not he or she paid for it and one person's consumption decreases the amount available for other people's consumption. Natural monopoly goods are nonrival and excludable. Potential users of the good can be excluded if they do not pay but once having paid their use of the good is nonrival.
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In the long-run, a perfectly competitivel firm will achieve
a. Average rate of return b. Above average profits c. Losses d. Economic Profits
Which of the following statements is true about individuals and utility?
A. Individuals seek to maximize utility. B. Individuals seek to maximize their income, not utility. C. Individuals will either minimize or maximize utility depending on the situation. D. Individuals rarely try to maximize their utility.
The branch of economics that focuses on outcomes in highly aggregated markets, such as the markets for labor or consumption goods, is called: a. macroeconomics
b. positive economics. c. normative economics. d. microeconomics.
When the Fed increases the money supply, interest rates
a. rise, causing velocity to fall. b. fall, causing velocity to fall. c. rise, causing velocity to rise. d. fall, causing velocity to rise.