How do public goods differ from private goods?
What will be an ideal response?
A private good is characterized by the principle of rival consumption, which means that one person's consumption of a good reduces the amount available for someone else. A public good is not characterized by the principle of rival consumption. Public goods can be used by more people at no additional cost. Further, once the good is produced, it is usually impossible, or at the very least difficult, to exclude anyone from consuming it.
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In the United States, the highest quintile of income earners face an average federal tax rate of ________, and the lowest quintile of income earners face an average federal tax rate of ________
A) 20%; 20% B) 68.8%; 0.4% C) 24%; 1.5% D) 29.4%; 11.5%
Technological efficiency occurs when the firm produces a given output by using the least amount of inputs
Indicate whether the statement is true or false
If households and firms decide to hold less of their money in checking account deposits and more in currency, then initially, the money supply
A) will decrease. B) will not change. C) will increase. D) may increase or decrease.
Which of the following is true of perfect price discrimination?
a. Profit is lower than it would be without discrimination. b. Revenue is higher than it would be without discrimination, but profit is lower. c. Average revenue and average cost are both higher than they would be without discrimination, so it is not certain whether profit will be higher. d. Consumer surplus is zero. e. Profit is zero.