An important difference between the demand for a private good and the demand for a public good is that
A) the resources used to provide public goods are common resources or government owned; the resources used to produce private goods are all privately owned.
B) individuals reveal their preferences for a public good but they do not have to reveal their preferences a private good.
C) the demand for a private good produces consumption externalities; the demand for a public good produces production externalities.
D) individuals reveal their preferences for a private good but they do not have to reveal their preferences for a public good.
D
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Unregulated markets will tend to
A. rapidly deplete any natural resource. B. naturally conserve any depletable natural resource by pushing up its price every year by a constant dollar amount. C. naturally conserve a depletable resource by pushing up its price at a constant rate every year. D. deplete a resource unless new supplies are found.
The dollar value of GDP increased approximately 4 percent during the year, but real GDP fell 2 percent. Which of the following best explains this data?
a. The real capacity of the economy increased more rapidly than money output. b. In the international sector, there was a balance of trade deficit of approximately 2 percent of GDP. c. The inflation rate was approximately 6 percent during the year. d. The general level of prices rose approximately 2 percent.
Suppose there were three candidates running for office: Dewey, Cheatum, and Howe. Suppose a majority of voters preferred Cheatum to Dewey. Does this mean that a majority of voters preferred Howe to Dewey?
What will be an ideal response?
Over a 10-year period, the Consumer Price Index doubled. On the basis of this information we can say that the average annual rate of inflation over this period was approximately:
A. 5 percent. B. 9 percent. C. 10 percent. D. 7 percent.