Is a sailboat purchased in Victoria, British Columbia, a private good or a public good?
What will be an ideal response?
The sailboat is a private good. The sailboat has none of the characteristics of a public good. First, people can easily be excluded from using the boat. Basically, the only people allowed on the boat are the people the owner allows on the boat. Second, the owner's use of the boat prevents other people from simultaneously using the boat. That is, the owner's consumption of the boat decreases the quantity available for other consumers.
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If monopolistically competitive firms in an industry are making an economic profit, then new firms will enter the industry and the product demand facing existing firms will
A. become less elastic. B. decrease. C. increase. D. not be affected.
Suppose the inflation rate target is "0" and the long run federal funds target is also "0." Calculate the federal funds rate if the current inflation rate is 5% and real output is 4.5% below trend output
A) 2.25% B) 5.25% C) 0.5% D) 0.25%
A short-run decrease in real GDP will
a. increase the price of non-labor inputs, increase input requirements per unit of output, and increase the price level b. increase the price of non-labor inputs, decrease input requirements per unit of output, and decrease the price level c. decrease the price of non-labor inputs, decrease input requirements per unit of output, and decrease the price level d. increase the price of non-labor inputs, decrease input requirements per unit of output, and increase the price level e. decrease the price of non-labor inputs, increase input requirements per unit of output, and increase the price level
According to the law of diminishing marginal returns, as more of a variable input is combined with fixed amounts of other resources:
a. the additions to output will eventually decrease. b. the additions to output cannot increase. c. total output will eventually decrease. d. the additions to output will eventually turn negative.