When a good is both rivalrous and nonexcludable the:
A. free rider problem may arise.
B. tragedy of the commons may arise.
C. good is likely a private good.
D. good is likely an artificially scarce good.
B. tragedy of the commons may arise.
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Merchant banks and land mortgage companies were the result of the expansions in the transportation and industrial systems
Indicate whether the statement is true or false
If Egypt has a chronic unfavorable balance of trade, it will eventually lead to
a. the Egyptian government's decision to appreciate its currency (the pound) b. the Egyptian government's decision to devalue its currency (the pound) c. the Egyptian government's policy to create a favorable balance of payments d. the Egyptian government's policy to create a favorable balance on current account e. a negative balance of payments
Consider an Edgeworth economy where there are two citizens, Mr. Cortopassi and Ms. Thomas. There are only two goods to be consumed in the economy, Beer and Pretzels. The total amount of Beer is 12 units. The total amount of Pretzels is 12 units. Answer the following: Suppose Mr. Cortopassi has utility for the two goods characterized as U C (B,P) = B + P. Ms. Thomas's utility function is U T (B,P) = B + P. Identify the points that are Pareto efficient.
What will be an ideal response?
An economy operating inefficiently is graphed as a point ______ the production possibilities curve.
a. above
b. inside
c. outside
d. on