The provision of a public good generates a
a. positive externality, as does the use of a common resource.
b. positive externality and the use of a common resource generates a negative externality.
c. negative externality, as does the use of a common resource.
d. negative externality and the use of a common resource generates a positive externality.
b
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In his book Power and Prosperity, the economist Mancur Olson theorized that a country is better off under a dictator who maintains power for a long period, such as Mobutu, than under a short-term, unstable dictatorship
Olson maintained that, while both are very undesirable forms of government, the former is less disruptive to the economy than the latter.Discuss why this assertion may or may not be true.
If there is currently a surplus of dollars, which of the following would you expect to see in the foreign exchange market?
A) There will be a decrease in the supply of dollars. B) The dollar will depreciate. C) The dollar will appreciate. D) There will be a decrease in the demand for dollars.
As a result of an open market purchase, bank reserves
A) rise and interest rates fall. B) fall and interest rates rise. C) and interest rates both rise. D) and interest rates both fall.
Suppose Paris thinks a 5 percent increase in her hourly wage as an incentive to work more hours while the price level also increases by 5 percent. Paris is said to be suffering from
A) money illusion. B) rationality. C) irrationality. D) the effects of competition.