What are the differences between public goods and private goods?
What will be an ideal response?
Public goods are
? nonrival, which means that consumption by one person doesn't decrease the quantity available for others people, and
? nonexcludable, so that a good is nonexcludable if everyone benefits from it regardless of whether they pay for it.
In contrast, private goods are
? rival, so that consumption by one person decreases the quantity available for other people and
? excludable, which means that only the people who pay for the good are able to enjoy its benefits.
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What are the factors that contribute to productivity growth in the market economy and which of them is considered most important?
The employee is thinking like an entrepreneur in which of the following situations?
A) A cashier rings up the total purchase price of the goods in the customer's cart. B) A staff member brings a plan to the supervisor which describes how to reduce costs and attract new customers. C) An employee attends a monthly staff meeting on company policies and procedures. D) An hourly employee goes to work and performs only the required tasks.
The demand for food is price-inelastic.
Answer the following statement true (T) or false (F)
If, at the output where marginal revenue equals marginal cost, price is below average variable cost, a firm will shut down in the short run.
Answer the following statement true (T) or false (F)