Explain why government, rather than private firms, is required for efficient mosquito eradication programs.
What will be an ideal response?
Mosquito eradication is a public good. It is nondepletable, so benefits to one do not reduce benefits available to others. It is also nonexcludable, so it would be difficult to prevent free riders. For both these reasons, there is no opportunity cost to protecting an additional user. There is also the inability to keep out nonpayers even if it were efficient to charge (which it isn’t). The government must provide the good if there is to be efficient protection.
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An increase in government expenditure shifts the ________
A) labor demand curve to the left B) labor supply curve to the left C) labor demand curve to the right D) labor supply curve to the right
"Today the U.S. telecommunications industry remains heavily regulated by the government as it was some 30 years ago." Do you agree or disagree? Why?
What will be an ideal response?
Velocity is commonly calculated by which of the following formulas?
A. (Value of money stock) / (Value of nominal GDP) B. (Value of transactions) / (Money stock) C. (Value of financial transactions) / (GDP) D. (Value of output) / (Value of input)
The Social Security and Medicare programs have been a failure in terms of reducing poverty among elderly U.S. citizens
Indicate whether the statement is true or false