The reason individual homeowners usually do not hire a private contractor to fill the potholes on their street is because:
A. it costs too much.
B. the value to the neighborhood exceeds the cost of repair.
C. others who use the street will be free riders.
D. there are negative externalities associated with the repair.
Answer: C
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Changes in the size of an industry may cause supply to shift.
Answer the following statement true (T) or false (F)
If Americans' home equity falls substantially, it would ____ wealth and consumer confidence, ____ consumption, and ____ aggregate demand
a. increase, decrease, increase b. decrease, decrease, decrease c. increase, increase, increase d. increase, increase, decrease
The investment expenditures made by Macroville's power plant to reduce air polluting emissions result in a decrease in the national economy's net output for the year
Indicate whether the statement is true or false
In the mid-1990s, Coke introduced a new soda in the soft drink market. Coke then used a new advertising campaign to associate the new soda with youth and strength. Coke was trying to:
A. shift the demand curve for competing soft drinks to the left. B. create a perfectly competitive market for soft drinks. C. maximize its per unit costs through advertising. D. lower the market price of soft drinks.