When describing goods and services, what is meant by the terms "rival" and "nonrival?" Are private goods rival or nonrival? Are public goods rival or nonrival? Are common resources rival or nonrival?
What will be an ideal response?
A good is rival if its use by one person decreases the quantity available for other people. A good is nonrival if its use by one person does not decrease the quantity available for other people. Private goods are rival. Public goods are nonrival. Common resources are rival.
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The short-run market supply curve for a perfectly competitive market is obtained by summing the part of each firm's
A) AVC curve that lies above its MC curve. B) MC curve that lies above its AVC curve. C) AVC curve that lies below the MC curve. D) MC curve that lies below the AVC curve.
Utility is most closely defined by which of the following terms?
a. Useful. b. Worthiness. c. Necessary. d. Satisfaction.
A decrease in aggregate supply can result in:
a. unemployment. b. demand-pull inflation. c. prosperity. d. cost-push inflation. e. a recession.
The massive increase in government spending during World War II moved the economy in the span of a few short years from mass unemployment and price stability to "overfull" employment and severe demand-pull inflation. This situation can be best characterized by:
A. an increase in aggregate supply. B. a decrease in aggregate demand. C. a decrease in aggregate supply. D. an increase in aggregate demand.