What characteristics distinguish private goods from public goods?
Private goods are excludable and rivalrous, while public goods are nonexcludable and nonrival in nature.
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. If the legal incidence of a tax is entirely on suppliers, then the tax will have no economic effect on demanders. 2. An excise tax of 20 cents on gasoline shifts demand down by exactly 20 cents. 3. When a sales tax of 20¢ per soda is imposed on soda consumption, the supply curve for soda shifts down by precisely 20¢ per soda. 4. If a rise in supply and a rise in demand occur at the same time, then we know that the price must also rise. 5. If a fall in supply and a rise in demand occur at the same time, then we know that the price must also rise.
The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line is ________ the slope of the line between points B and C
A) greater than B) equal to C) less than D) unrelated to E) not comparable to
When will speculators' actions raise social welfare?
a. Always. b. When they drive down market prices. c. When their expectations prove to be correct. d. When they are not risk averse.
Which of the following are both correct?
a. Data show no correlation between saving and measures of economic well-being. A reduction in tax rates may reduce saving because of the income effect. b. Data show no correlation between saving and measures of economic well-being. A reduction in tax rates may reduce saving because of the substitution effect. c. Data show a positive correlation between saving and measures of economic well-being. A reduction in tax rates may reduce saving because of the income effect. d. Data show a positive correlation between saving and measures of economic well-being. A reduction in tax rates may reduce saving because of the substitution effect.