State whether each of the following goods is nonrival, nonexcludable, or both:
a. a botanical garden
b. a public beach
c. a congested interstate highway
d. a toll bridge
e. street lights
a. nonrival (and nonexcludable if admission does not require the purchase of a ticket)
b. both
c. nonexcludable
d. nonrival
e. both
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In the expansion phase of a business cycle
A. the inflation rate and productive capacity decrease. B. employment increases, but output decreases. C. the inflation rate decreases, but productive capacity increases. D. employment and output increase.
Leontief showed that U.S. exports were capital intensive relative to U.S. imports
Indicate whether the statement is true or false
Which of the following is true?
a. Anticipated inflation is an increase in the price level that comes as a surprise, at least to most individuals. b. Unanticipated inflation is a change in the price level that is widely expected. c. Decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy. d. Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.
Suppose your community is considering using public money to build a new sports stadium for a new team that will only come to the community if it is built for them. Suppose you are watching a news broadcast in which the supporters are saying that it will enhance economic activity because of the increase in restaurant activity that will occur around the new stadium. Now suppose you hear that an independent economist is going to appear during the next segment. It is likely she will say
A. it may be a short-term cost, but in the long term it will be worthwhile. B. there will be no new economic activity created. C. there will be no new economic activity created in net because the same amount of money will be spent in the city whether or not there is a team. It will simply substitute from the game to something else. D. the economic activity created in the area will make it worth the investment.