Answer the following statement(s) true (T) or false (F)
1. If the Open Range Field is currently a common property and the government decides to charge an entrance fee, this would result in an optimal level of activity in the Open Range Field.
2. Crowding at a common property site both reduces the benefits of visitors and increases the costs of being a visitor.
3. When people have identical tastes, nobody has any incentive to maintain or improve a property that is commonly owned.
4. When people have identical tastes, the rents created by a common property are totally dissipated.
5. When people have identical tastes, social gain can be created from a common property by imposing a Pigovian tax on entrants.
1. False
2. False
3. True
4. True
5. True
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Suppose the supply of apartments in Minneapolis is perfectly elastic. The effect of a $100 per month tax on all apartments is that
A) landlords pay none of the tax and there is a surplus of apartments. B) landlords pay all of the tax and suffer all of the deadweight loss. C) landlords pay all of the tax and no changes take place in the quantity of apartments supplied. D) renters pay all of the tax. E) the government collects no tax revenue because the supply is perfectly elastic.
Suppose people decide to buy fewer GE stoves. If General Electric reduces the number of its employees to reduce its costs but no other stove company does so, which type of unemployment results?
A) cyclical B) marginal C) structural D) frictional E) discouraged
In a competitive market the ________ curve shows the marginal benefit received by consumers and the ________ curve shows the marginal cost to producers
A) demand; market demand B) supply; demand C) supply; market supply D) demand; supply
According to the theory of structural patterns of development, which of the following tends to occur as a country develops?
a. a shift from agriculture to industry and services b. an increase in the percentage of income spent on food c. growth of the rural sector d. a decline in trade as a share of GNP