Everyone in the neighborhood has been complaining about the deteriorating condition of the park, but nobody has cleaned it up. Why not?
A. There is an excess demand for parks in the neighborhood.
B. There is an excess supply of parks in the neighborhood.
C. No single person's benefit from cleaning the park exceeds that person's cost of cleaning it.
D. The social benefit of cleaning the park exceeds the social cost of cleaning it.
Answer: C
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An inward shift of the production possibilities curve
A. represents an economic decline. B. means that the previous levels of production are now unobtainable except under unusual circumstances such as war. C. means that the economy can produce more of both goods. D. represents an economic decline AND means that the previous levels of production are now unobtainable except under unusual circumstances such as war.
Each of the following consumers exhibit behavior that violates one of the basic assumptions of consumer preferences. Identify the assumption that is violated for each individual
? Art says that he can watch 2 movies a week but couldn't be paid to watch another movie after that. ? Alex says that he prefers going to a movie over hiking. He also indicates that he prefers hiking to swimming. Alex then states that he would rather go swimming than go to a movie. ? Alicia says that she prefers hiking to watching a movie but can't determine her preferences for swimming.
Diminishing marginal utility means that
a. as you consume more of a good, other things constant, the total satisfaction you obtain from consuming this good tends to fall b. as you hire more labor, other things constant, the total amount produced begins to fall c. as you hire more labor, other things constant, the marginal product begins to fall d. as you consume more of a good, other things constant, the additional satisfaction you obtain from each additional unit of the good tends to fall e. as you consume more of a good, other things constant, the extra satisfaction you obtain from each extra good becomes negative
Wages in most other countries have increased as a percentage of U.S. wages in the past 33 years
a. True b. False Indicate whether the statement is true or false