Explain why the buffalo almost became extinct while cattle did not, even though both provide similar goods for people
What will be an ideal response?
Cattle have been privately owned for most of human history while the buffalo was a common property resource. A person obtained private property rights on a buffalo by killing it, so they were overhunted. With private property rights, people have an incentive to husband the resource so there will be animals available in the future.
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According to Keynesian economics, if there are unutilized resources in the economy and aggregate demand increases
A) real GDP will fall and price level will remain constant. B) real GDP will rise and price level will remain constant. C) real GDP will rise and price level will fall. D) real GDP will rise and price level will rise.
Unemployment arising from job search is called:
A) disguised unemployment. B) frictional unemployment. C) structural unemployment. D) cyclical unemployment.
Which of the following firms is considered a monopoly?
A. The U.S. Postal Service B. Taco Bell C. United Airlines D. Macy's Department Store
The compensated demand curve holds the consumer's utility fixed as the price changes
Indicate whether the statement is true or false