Suppose you volunteer to help clean up your neighborhood, and the only payment you receive is the sense of goodwill that develops with your neighbors. Your efforts cause the GDP of the economy to
A. Fall by the opportunity cost of the time you spend doing volunteer work.
B. Rise by the opportunity cost of the time spent by all of the people in the neighborhood on the volunteer project.
C. Rise by the value of increased cleanliness of the neighborhood.
D. Remain unchanged.
Answer: D
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Which major asset experienced a price bubble just before the housing price bubble of 2006-2009?
A) Internet or tech-stocks B) Tulip bulbs C) Japanese real estate D) Railroad stocks
Unions can ration the excess supply of labor generated by the establishment of a wage that is above the competitive wage by
A) lengthening the time period for apprenticeship programs. B) lowering union dues. C) encouraging older workers to take early retirement. D) having more intensive membership drives to ensure a larger proportion of workers are covered by the union contract.
Figure 11.5The monopolistic competitive industry in Figure 11.5 will tend to:
A. contract. B. remain the same size. C. expand. D. go out of business.
The income elasticity of demand for skiing trips to Vermont is greater than one. Thus a trip to Vermont for skiing is ________ good
A) a normal B) an inferior C) a unit elastic D) a price elastic E) a price inelastic