There are 20 residents in the village of Towneburg. The size of the village's annual fireworks display depends upon the number of shells that are fired off. Each resident's demand for fireworks is shown below. The total cost of the fireworks display is $1,000 plus $10 per shell.
Cheap Charlie is one of Towneburg's 20 residents. While Charlie enjoys fireworks as much as the next Towneburger, when the fireworks fund-raising campaign kicks off, he claims to hate them. Cheap Charlie is trying to:
A. log-roll.
B. free ride.
C. rent seek.
D. force the village to be more efficient.
Answer: B
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According to Keynesians, an increase in the money supply will:
a. decrease the interest rate, and increase investment, aggregate demand, prices, real GDP, and employment. b. decrease the interest rate, and decrease investment, aggregate demand, prices, real GDP, and employment. c. increase the interest rate, and decrease investment, aggregate demand, prices, real GDP, and employment. d. only increase prices.
In addition to the items one must give up in order to afford the cost of cigarettes, the opportunity cost of smoking includes
a. your enjoyment from smoking b. the health effects one places upon others c. your expected health effects and shortened life span d. harassment from nonsmokers e. smoking cessation advertising on television
The most inclusive of all price indexes is
a. the GDP deflator b. the price level c. the CPI d. nominal index e. real index
What is the aggregate supply curve?
A. a curve showing the various quantities of total real output that business will purchase for investment at various alternative price levels. B. a curve showing the various quantities of total real output that will be offered for sale at various alternative price levels. C. a curve showing the various quantities of goods and services that households will provide at various alternative price levels. D. a curve showing business investment at various alternative price levels.