Which of the following is an example of free riding?
A) An individual who sneaks inside a music concert
B) A consumer who buys his groceries from a nearby store
C) A tax payer who exercises in the public park near his house
D) A club member who makes voluntary contributions to the club
A
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National League pitchers partake in some batting practice (typically, bunting). Why don't American League pitchers practice batting?
A) Practice can't be expected to improve their terribly poor batting skills. B) They have little incentive, given the designated hitter rule. C) They don't believe the slogan "There is no 'I' in 'Team'." D) They ignore the rules of the game.
Which of the following is a necessary condition for price discrimination to be profitable?
a. All consumers must have identical preferences. b. It must be easy to distinguish consumer groups with differing responses to higher prices. c. The seller must face a horizontal demand curve for its product in at least one part of the market. d. Both b and c are correct.
Under a gold standard, if the U.S. has a trade deficit with Japan,
A. the U.S. would receive gold from Japan, the Japanese money supply would decline, and the price level would fall in Japan. B. the U.S. would receive gold from Japan, the U.S. money supply would increase, and the U.S. price level would rise. C. the U.S. would lose gold to Japan, the U.S. money supply would increase, and the price level in the U.S. would increase. D. the U.S. would lose gold to Japan, the U.S. money supply would decline, and the U.S. price level would fall.
If the economy is in a boom, the implementation lag is generally shorter for fiscal policy than for monetary policy, but if the economy is in a slump, the implementation lag is generally shorter for monetary policy than for fiscal policy.
Answer the following statement true (T) or false (F)