Which of the following statements explains why it is so difficult for governments to provide the optimal quantity of a public good?
A) Governments have no way of collecting payments for public goods
B) Public goods are non-rival but excludable, which makes them costly to produce
C) The marginal cost of providing a nonrival good is usually too high for the price conscious consumers
D) The marginal benefit of each individual user must be known, and it is often overstated by individuals
Answer: D) The marginal benefit of each individual user must be known, and it is often overstated by individuals
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The PPF determines
A) all possible outcomes for a given wage. B) the set of feasible outcomes. C) given leisure, how much consumption a household wants. D) the share of consumption in output.
Which of the following best describes the inflation rate in the United Kingdom in 1975?
a. 8% b. 15% c. Almost 25% d. More than 25%
The term labor productivity refers to the
a. management time required to manage a unit of output b. maximum number of laborers that a production facility can utilize c. ratio of workers' wage rate to the value of the good d. minimum number of laborers required to produce a good e. quantity of output per laborer per hour
In a representative labor market,
a. the wage adjusts to balance the supply and demand for labor. b. the wage equals the value of the marginal product of labor. c. an increase in the supply of labor increases the equilibrium wage. d. Both a and b are correct.