Tammy installed a set of wind chimes in her backyard. She enjoys listening to the musical tones when the breeze hits them. Her neighbor Steven also enjoys the chimes, but her other neighbor Sally hates the constant noise. Tammy's wind chimes
a. create a negative externality for Steven and a positive externality for Sally
b. are not related to the issue of property rights since all parties are homeowners
c. are an example of an efficient market since the benefits to one party are balanced by costs to another party
d. are a public good because all three parties can hear the wind chimes
e. create a positive externality for Steven and a negative externality for Sally
E
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The more elastic the supply of a resource,
a. the greater is economic rent as a proportion of total earnings b. the greater is opportunity cost as a proportion of total earnings c. the fewer alternative uses the resource has d. the greater the derived demand for the resource e. the lower the derived demand for the resource
From an economic point of view, someone who goes shopping for groceries every week has a great deal of practice with how to purchase the combination of goods that will provide the most utility, even if the shopper doesn't phrase decisions in terms of a budget constraint
a. True b. False Indicate whether the statement is true or false
Complements
What will be an ideal response?
For which of the following markets would the fallacy of composition least likely apply?
A. Poultry market B. Labor market C. Market for savings and investment D. World market for oil