If a good has the characteristic of nonrivalness, it means that
a. the good is publicly provided
b. it is impossible to prevent others from sharing the benefits of consumption
c. the benefits linked to consumption are indivisible
d. none of the above
c. the benefits linked to consumption are indivisible
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An increase in the money wage rate shifts the short-run aggregate supply curve ________; an increase in technology shifts the long-run aggregate supply curve ________
A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's tax level rises relative to England and nothing else changes, then the:
a. The supply of Swiss francs in the foreign exchange market falls, and the demand for Swiss francs in the foreign exchange market rises, causing an appreciation of the Swiss franc. b. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing an appreciation of the Swiss franc. c. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market falls, causing a depreciation of the Swiss franc. d. The supply of Swiss francs in the foreign exchange market rises, and the demand for Swiss francs in the foreign exchange market rises, causing an uncertain change in the value of the Swiss franc. e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
In order to bring a market to its efficient outcome when a negative externality is present, the government could:
A. tax the parties involved in the market the value of the external cost. B. limit the price to the efficient level. C. limit total consumption to the efficient quantity. D. Any of these would bring the market to its efficient level.
The rate of interest that you pay on a home loan depends upon all of the following EXCEPT
A. the supply of houses in the real estate market. B. your credit rating. C. handling charges or loan fees. D. the length of the loan.