Answer the following statements true (T) or false (F)
1. Over the span of many years, a student and her family invest significant amounts of time and money into that student’s education. It is worth it, because median weekly earnings are about 10% higher for workers who have completed more education.
2. Cooperation between government-funded universities, academies, and the private sector has been shown to delay product innovation and repress whole new industries.
3. All goods and services with positive externalities are also public goods.
4. Government spending and taxes are not the only way to provide public goods.
5. Because nobody owns the ocean, or the creatures that live in it, no one has the ability to protect these resources and ensure they are responsibly harvested.
1. True
This statement is true. Over the span of many years, a student and her family invest significant amounts of time and money into that student’s education. Once the numbers are crunched, median weekly earnings are about 10% higher for workers who have completed more education.
2. False
This statement is false. Cooperation between government-funded universities, academies, and the private sector can spur product innovation and create whole new industries.
3. False
This statement is false. Not all goods and services with positive externalities are public goods. Private companies can profitably invest in things that provide social benefits.
4. True
This statement is true. Government spending and taxes are not the only way to provide public goods. In some cases, markets can produce public goods.
5. False
This statement is false. Because nobody owns the ocean, or the creatures that live in it, no one individual has an incentive to protect these resources and responsibly harvest them. To address the issue of overharvesting marine resources, economists typically advocate simple devices like fishing licenses, harvest limits, shorter fishing seasons, and outright bans when populations drop too low.
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Suppose Clyde always eats ice cream and chocolate syrup together. If the price of syrup increases by 10 percent, and the cross elasticity of demand is -2, the demand for ice cream
A) increases by 5 percent. B) increases by 20 percent. C) decreases by 5 percent. D) decreases by 20 percent.
A restrictive monetary policy, all else equal, will:
A) depreciate the domestic currency. B) appreciate the domestic currency. C) all of the above. D) none of the above.
While cyclical majorities can lead to unstable outcomes, they generally do not because of _____
a. rational ignorance b. double-peaked preferences c. political institutions d. majority rule
Refer to the above information. Which individual would be classified as a discouraged worker?
The following items describe the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment. 1. Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month, but still has not gotten a job offer. 2. George used to work in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in a few months when national economic conditions improve. 3. Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the Federal government cut defense spending. She has been looking for similar work for a year but no company seems interested in her aircraft design skills. 4. Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year, but was unsuccessful and quit looking for work. A. Mollie B. George C. Jeanette D. Ricardo