When one person consumes a nonexcludable good,
a. others cannot be prevented from also consuming it.
b. it can be provided to others for no additional cost.
c. the amount available for others to consume is reduced.
d. any other users will receive zero economic rent from it.
a. others cannot be prevented from also consuming it.
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A perfectly competitive firm is more likely to shut down during a recession, when the demand for its product declines, than during an economic expansion, because during the recession it might be unable to cover its
A) fixed costs. B) variable costs. C) external costs. D) depreciation due to machinery becoming obsolete.
When positive externalities exist, the private market equilibrium represents a
A. market price which is too low and a market quantity which is too high. B. market price which is too high and a market quantity which is too high. C. market price which is too high and a market quantity which is too low. D. market price which is too low and a market quantity which is too low.
A price floor above the market clearing price typically results in I. an excess quantity supplied II. a shortage III. an excess quantity demand
A) I only B) II only C) III only D) II and III only
The intrinsic value of U.S. currency today is the value of
A. government bonds. B. gold. C. silver. D. nothing.