What are private goods? Mention two important attributes of private goods
A private good is a commodity characterized by both depletability and excludability. A commodity is depletable if it is used up when someone consumes it. A commodity is excludable if someone who does not pay for it can be kept from enjoying it.
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What is meant by the natural rate of unemployment?
All are examples of government purchases that would be included in GDP except:
A. pencils for the employees of the FBI to use. B. the salaries of those in the military working in California. C. salaries paid by government to foreign contractors in Iraq. D. replacement calculators for the Congressional Budget Office.
In a closed economy, what is the relationship between saving and investment?
A) Saving is greater than investment. B) Investment is greater than saving. C) Investment is equal to saving. D) Investment may be greater or smaller than saving.
Refer to the information provided in Table 19.8 below to answer the question(s) that follow.Table 19.8Total IncomeTotal Taxes$20,000 $2,000 40,000 4,800 60,000 9,000 80,000 16,000Related to the Economics in Practice on page 393: Refer to Table 19.8. If income increases from $20,000 to $40,000, the marginal tax rate is
A. 2%. B. 12%. C. 14%. D. indeterminate from this information.