Is national defense excludable? Is it rival in consumption? How do we classify national defense in terms of the four types of goods?
National defense is neither excludable nor rival in consumption, so it is a public good.
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Keeping in mind the Coase theorem, in the figure above, if the residents of the town own the lake, how much do they charge the factories to dump waste?
A) $30 per ton of pesticide produced B) $40 per ton of pesticide produced C) $20 per ton of pesticide produced D) Nothing
If a person prefers a gamble with an expected value of $100 to a sure $100 that person is
A) irrational. B) a risk lover. C) nonsystematic. D) managing a portfolio.
Referring to Figure 18.2, U.S. goods will become more expensive in Mexico if the exchange rate goes from ________ to ________ pesos to the dollar.
A. 12; 11 B. 12; 13 C. 13; 11 D. 14; 10
When income falls
A. there is a movement downward along the demand curve for an inferior good. B. the demand for an inferior goods rises. C. the demand for a normal goods rises. D. there is a movement downward along the demand curve for a normal good.