Vicarious consumption refers to the notion that
a. individuals have a sense of obligation to preserve the environment for future generations
b. people gain utility knowing that others receive gains from an environmental good
c. individuals gain from directly consuming the services generated by an environmental resource
d. natural resources have intrinsic value
e. none of the above
b. people gain utility knowing that others receive gains from an environmental good
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A person has a comparative advantage in an activity if that person can
A) produce more goods in a given amount of time than another person. B) produce fewer goods in a given amount of time than another person. C) perform the activity at a lower opportunity cost than anyone else. D) perform that activity at a higher opportunity cost than anyone else.
Trinh quits his $80,000-a-year job to become a full-time volunteer at a museum. What is the opportunity cost of his decision?
A) the value he attributes to the joy of working at a museum B) depends on the "going rate" of museum employees C) at least $80,000 D) 0 since he will no longer be earning a salary
Which of the following statements is true about the demand for and/or the supply of natural resources?
a. The supply curve for natural resources is more elastic in the long run than in the short run. b. The elasticity of demand for electricity, natural gas, and gasoline equals approximately 0.1 in both the short run and the long run. c. Natural resources are demanded by consumers and producers in steadily growing amounts, so future shortages are inevitable. d. The supply of many natural resources is finite; thus the long-run elasticity of supply must be zero.
Which of the following does not help to explain why politicians might hesitate to balance the budget in an election year?
A. The inflation rate might rise. B. The economy could be pushed into recession. C. Many people might lose income transfers. D. Voters might become unemployed.