Differentiate between a public good and a common resource good
A public good is neither rival nor excludable. It is not rival because everyone can consume the good simultaneously. It is not excludable because once the good is produced, it is prohibitively costly to exclude anyone from consuming the good. On the other hand, a common resource is a rival good that is nonexcludable; that is, nonpayers cannot be easily excluded from consuming the good, and when one unit is consumed by one person, it means that it cannot be consumed by another.
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Betty and Wilma are the only two cashiers employed at a retail store. Each of them works the same 40 hours per week. By manually entering the price of each product purchased into the cash register, Betty can check out 20 customers and Wilma can check out 30 customers per hour. The store owner replaces the old cash registers with new ones that automatically scan product prices into the register. With the new cash registers, Betty and Wilma can each check out 60 customers per hour. Their average labor productivity as a team before the new cash registers were introduced was ________ customers per hour and ________ customers per hour after the new machines were installed.
A. 50; 60 B. 50; 120 C. 1,000; 2,400 D. 25; 60
The net present value of $1,000 received one year from now will
a. increase with the interest rate. b. exceed $1,000 as long as the interest rate is positive. c. exceed the net present value of $1,000 to be received two years from now. d. equal $1,100 if the current interest (discount) rate is 10 percent.
A nation can forecast the following year's deficit without knowing how fast GDP will grow.
Answer the following statement true (T) or false (F)
Which of the following is one possible explanation for the change in the natural rate of unemployment in the United States during the 1970s?
A) contractionary fiscal policy B) an increase in the proportion of labor contracts that were indexed C) contractionary monetary policy D) all of the above E) none of the above