The members of the Clean City group report that the overuse of several gardens in a neighborhood has led to pollution. In order to protect the gardens, they allowed only the elderly to access the gardens. By taking this measure, they converted a _____ to a _____
a. private good; public good
b. public good; merit good
c. private good; club good
d. public good; club good
d
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If the government wishes to increase the level of real GDP, it might reduce
A. the size of the budget deficit. B. transfer payments. C. its purchases of goods and services. D. taxes.
How does the demand for high-skilled workers compare to the demand for low-skilled workers? Why does this difference exist?
What will be an ideal response?
Explain why resources are used efficiently in a competitive market
What will be an ideal response?
Government action will often result in the counterproductive use of resources because
a. there is often a conflict between winning political elections and adoption of only productive programs. b. many politicians are not interested in how their legislative votes will influence their chances of winning future elections. c. politicians are often unwilling to listen to interest groups that have specialized knowledge. d. voter participation is low; if more people voted, the political process would be more efficient.