Answer the following statement(s) true (T) or false (F)
1. Use of a common property is nonrivalrous.
2. A nonexcludable good, once produced, can be made available to others at no additional cost.
3. Private markets tend to undersupply nonrivalrous goods because of free riding.
4. Once it has been produced, the efficient price for a nonrivalrous good is zero.
5. An HBO broadcast over cable television is rival in consumption but non-excludable.
1. False
2. False
3. False
4. True
5. False
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Suppose velocity does not change. Then, in the long run, a growth rate of the quantity of money that exceeds growth in real GDP has what effect?
What will be an ideal response?
The financial intermediaries that the average person interacts with most frequently are
A) exchanges. B) over-the-counter markets. C) finance companies. D) banks.
Framing often causes people to
A) violate expected utility theory. B) go to prison. C) fall afoul of the certainty effect. D) become risk-averse.
When a variable is top coded, its value is known only up to a certain threshold.
Answer the following statement true (T) or false (F)