The sign on a church in your neighborhood reads "All are welcome at Sunday Service.". Because the church has limited seating and is usually full, the Sunday Service is
a. a private good.
b. a public good.
c. a club good.
d. a common resource.
Correct answer is d. a common resource.
You might also like to view...
Tools used by economists include
A. historical study. B. mathematical reasoning. C. statistical inference. D. All of these responses are correct.
Adverse selection refers to the
A) use of statistical discrimination in making loans. B) possession of information by one party in a financial transaction not known by the other party. C) likelihood that a potential borrower may use the funds that he receives for unworthy, high risk projects. D) possibility that the borrower may engage in riskier behavior after the loan is obtained.
Personal income is:
a. total income received by households before taxes. b. the amount households have available for consumption, savings, and payment of personal taxes. c. national income minus corporate profits and Social Security (FICA) plus transfer payments, and other income. d. all of these.
Suppose the real exchange rate is such that the market for foreign-currency exchange has a surplus. This surplus will lead to
a. an appreciation of the dollar, an increase in U.S. net exports, and so an increase in the quantity of dollars demanded in the foreign exchange market. b. an appreciation of the dollar, a decrease in U.S. net exports, and so a decrease in the quantity of dollars demanded in the foreign exchange market. c. a depreciation of the dollar, an increase in U.S. net exports, and so an increase in the quantity of dollars demanded in the foreign exchange market. d. a depreciation of the dollar, a decrease in U.S. net exports, and so a decrease in the quantity of dollars demanded in the foreign exchange market.