Answer the following statement(s) true (T) or false (F)
1. A non-congested toll road is an example of a good that is excludable, but not rivalrous in consumption.
2. Public goods can frequently be provided by private action when the resulting benefits are widespread.
3. All economists agree that a public good is one the is nonrivalrous and nonexcludable.
4. When a public goods increases the desirability of living in a certain area, benefits tend to be captured entirely by an increase in land values.
5. In a Clarke tax scheme, the amount of tax that a person pays depends, in part, on his revealed preference for the public good.
1. True
2. False
3. False
4. True
5. False
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An increase in demand occurs when
A) we measure price in money price rather than real price. B) we move up the demand curve. C) the demand curve shifts to the right. D) the demand curve shifts to the left.
If the demand for labor increased but more slowly than the supply a. wages would rise
b. wages would fall. c. there would be an increase in the amount of laborers employed. d. both (b) and (c) would result.
Which one of the following will cause the production possibilities curve to shift outward?
a. improved public education b. improved health care systems c. larger budgets for research, development, and exploration d. all of the above
Juanita makes $36 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $36 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling.
