Some resources are private and others are common. Define a common resource, explain the definition, and provide an example of a private resource and a common resource
What will be an ideal response?
A common resource is rival and nonexcludable. Because the resource is rival, if one person uses some of the resource, the person decreases the quantity available for other people to use. And because the resource is nonexcludable, it is not possible to prevent someone from using the resource. An example of a private resource is a gold mine: This resource is rival but is excludable. It is rival because one persons' use of the gold decreases the quantity available for other people. And it is excludable because the owner of the gold mine can keep anyone out of the mine that he or she wants to keep out of the mine. An example of a common resource is fish in the ocean. This resource is rival and nonexcludable. It is rival because one person's catch of a fish decreases the catch of other people. And it is nonexcludable because a fisherman cannot keep anyone from fishing in the river, lake, or ocean.
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What did the HPAE do to share wealth across all levels of society?
What will be an ideal response?
Daniel was just laid off from his teaching job at the local high school due to state budget cuts resulting from the reduction in tax revenue during the recent economic downturn. Daniel would best be categorized as
A) frictionally unemployed. B) structurally unemployed. C) cyclically unemployed. D) seasonally unemployed.
Suppose the marginal product of the second worker hired by a firm is 3, and the price of the last unit produced is $7 . Which of the following is true of the marginal revenue product of the second worker?
a. It must equal $21. b. It must be less than or equal to $21. c. It must be greater than or equal to $21. d. It equals $21 only if the firm is a price searcher (e.g., monopoly). e. We can conclude nothing about marginal revenue product.
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, if the economy is operating in autarky and decides to open trade with a tariff, the impact on domestic demand is they will:
A. decrease consumption from 1500 to 815. B. increase consumption from 815 to 1150. C. decrease consumption from 1500 to 1150. D. increase consumption from 815 to 1500.