There is much world concern over the deteriorating condition of the Pyramids and other historical structures in Egypt. While people of all nations enjoy visiting these structures, there has been little financial support for preservation coming from within Egypt or from elsewhere. Economists would describe this as an example of
a. an externality.
b. a public good.
c. a free rider problem.
d. imperfect information.
c
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In a set of indifference curves, why do the indifference curves that lie to the right represent higher levels of utility?
What will be an ideal response?
How are cap-and-trade schemes designed to reduce emissions?
What will be an ideal response?
Jim recently graduated from college. His income increased tremendously from earning $500 . a year to $60,00 . a year. Jim decided that instead of renting he will buy a house. This implies that
a. Houses are normal goods for Jim b. Houses are inferior goods for Jim c. Renting and Owning are complementary for Jim d. Need information on the price of houses
Which of the following is true?
a. Human choice is generally not influenced by changes in incentives. b. What is true for the individual must be true for the group as a whole. c. Using scarce resources to meet one need reduces our ability to meet needs in other areas. d. The economic way of thinking stresses that good intentions usually lead to sound economic policy.