The typical family on the Planet Econ consumes 10 pizzas, 7 pairs of jeans, and 20 gallons of milk. In 2008, pizzas cost $10 each, jeans cost $40 per pair, and milk cost $3 per gallon. In 2009, the price of pizzas went down to $8 each, while the prices of jeans and milk remained the same. Between 2008 and 2009, a typical family's cost of living:
A. remained the same.
B. increased by 4.5 percent.
C. decreased by 4.5 percent.
D. decreased by 20 percent.
Answer: C
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A nonexcludable public good is
A. nonrivalrous in consumption. B. rivalrous in consumption. C. asymmetric. D. a good for which it is impossible (or prohibitively costly) to exclude someone from receiving the benefits of its services. E. a and d
The following does not represent a threat to internal validity of randomized controlled experiments:
A) attrition. B) failure to follow the treatment protocol. C) experimental effects. D) a large sample size.
When the federal government deregulated the banking industry, savings and loans
a. continued to make only mortgage loans b. began to make riskier loans in areas such as speculative land development c. developed new loan markets which allowed them to prosper and expand d. began to merge with commercial banks e. lowered interest rates to attract new depositors
Why is the value of leisure listed as a shortcoming in the measurement of GDP?
What will be an ideal response?