Based on your sketch, is the good a normal or inferior good?
What will be an ideal response?
The good is a normal good because as nominal income drops to reach the final utility level the quantity is reduced.
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State whether each of the following goods is nonrival, nonexcludable, or both:
a. a botanical garden b. a public beach c. a congested interstate highway d. a toll bridge e. street lights
Mr. Smith put his laptop up for sale. He is aware of the fact that the laptop malfunctions frequently
However, none of the potential customers who came to buy the laptop were able to discover the problem and one of them actually bought it at a remunerative price. This occurred due to ________. A) the presence of asymmetric information B) the presence of positive externalities C) the presence of negative externalities D) the selective retention of information by sellers
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
The ________ principle of taxation is not often used because it is difficult to determine the values individual taxpayers place on goods and services that are produced using tax revenue.
A. horizontal equity B. benefits-received C. vertical equity D. ability-to-pay