Many cities have summer pops series in which the local orchestra performs light classical music in a public park. These performances are free in some areas. Apply the concept of a public good to pops performances and explain whether an admission charge is efficient
Pops performances are nondepletable in the sense that music reaching my ears takes nothing away from the ears of others. Exclusion may be possible, in which case free riders can be prevented from attending. However, if there is no MC from an additional user, efficiency calls for a zero price even if exclusion is possible. Naturally, if there are detrimental externalities, such as congestion or parking on nearby lawns, this may call for pricing the good; this goes beyond the question, which said to apply public good concepts.
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A firm's resource at a given point in time can be defined as:
a. those investments made by it in profitable organizations. b. those tangible and intangible assets attached to it semipermanently. c. its ability to control the market price. d. its lobbying ability built over years of experience.
A piece of land is divided between John and Mary. However, only John gets the title to his share of land. Which of the following is true?
a. Both Mary and John will not take care of their lands. b. Mary will have a higher per capita output from her piece of land. c. John will not be able to rent out a portion of his land. d. Mary will have a greater incentive than John to invest in her piece of land. e. John will be able to use his land as collateral for a loan from a bank.
The structural deficit declines as the economy moves toward full employment.
Answer the following statement true (T) or false (F)
How much is the average propensity to save when disposable income is $400 billion?
A. 0
B. .25
C. .50
D. .75