Payments to households not in exchange for goods and services currently produced are:
a. transfer payments.
b. government purchases.
c. consumption expenditures.
d. investment expenditures.
a
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How is net present value used to decide whether a project should be undertaken or not?
What will be an ideal response?
If the price of ice cream rose to $30 per gallon, consumers would purchase fewer gallons of ice cream than if the price were $4 per gallon. If the price of chocolate sauce fell to $0.50 per can, consumers would purchase more chocolate sauce than if the price were $5 per can. These relationships illustrate the
a. law of supply. b. law of demand. c. difference between normal and inferior goods. d. difference between substitute and complement goods.
Refer to the graph below, which shows the demand and supply of tickets for a Broadway play. At what price is there a shortage of tickets?
a. at $75
b. at $125
c. at $145
d. at all three prices
Which is a characteristic of a public good?
A)non—excludability B)excludability C) rivalry among firms D) no free-rider problem