Suppose that a state installs a toll booth on a highway and requires drivers to pay $1.00 before entering the highway. Installation of the toll booth changes:
A. a nonexcludable good into an excludable good.
B. a nonrival good into a rival good.
C. a public good into a private good.
D. a nonrival good into a nonexcludable good.
Answer: A
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The figure above shows Clara's demand for CDs. If the price for a CD is $15, then Clara
A) receives no consumer surplus on the 6th CD she buys. B) receives a total of $10 of consumer surplus. C) will buy no CDs. D) receives a total of $40 of consumer surplus.
How are net exports and the government sector balance linked?
What will be an ideal response?
For antitrust concerns, courts have blocked all of the following proposed mergers except
a. Bethlehem Steel and Youngstown Steel b. AT&T and MCI c. Brown Shoe and G. R. Kinky d. Pabst Brewing and Blitz Brewing e. Von's Grocery and another L.A. supermarket
When individuals shift funds from money market mutual funds to no-load stock and bond mutual funds,
a. the growth rate of M1 will decline but the growth of M2 will be unaffected. b. the growth rate of M2 will decline but the growth of M1 will be unaffected. c. the growth rate of both M1 and M2 will decline. d. the growth rate of both M1 and M2 will increase.