A retired athlete built a gym near his house that could be used for free by all the residents in the neighborhood. However, the overuse of the facilities soon led to irreparable damages. This is an example of the ________
A) tragedy of the commons
B) pecuniary externality
C) paradox of thrift
D) prisoners' dilemma
A
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John has a marginal benefit of $7 for 1 slice of pizza, $5 for a second slice, $3 for a third slice, $1 for a fourth slice, and $0.50 for a fifth slice. The price of pizza is $1.50 per slice. Which of the following statements is correct?
A) John will purchase 3 slices of pizza and have consumer surplus of $10.50. B) John will purchase 4 slices of pizza and have consumer surplus of $12.00. C) John will purchase 2 slices of pizza and have consumer surplus of $1.50. D) John will purchase 3 slices of pizza and have consumer surplus of $4.50. E) John will purchase 2 slices of pizza and have consumer surplus of $3.00.
Moving upward along an LM curve, velocity ________ because ________ remains constant while ________ rises
A) rises, real balances, real income B) rises, the interest rate, the price level C) rises, the interest rate, real balances D) falls, real balances, real income E) falls, real income, real balances
Use the Slutsky equation to show that a Giffen good must be an inferior good, BUT an inferior good need not be a Giffen good
What will be an ideal response?
Macroeconomic statistics include GDP, the inflation rate, the unemployment rate, retail sales, and the trade deficit
a. True b. False Indicate whether the statement is true or false