Brinley puts on an art show in a public space, asking for donations based on how much people enjoy his work. Economists would expect that:
a. people will understate their enjoyment of the art in order to "free ride."
b. people will overstate their enjoyment of the art, attempting to substitute praise for money.
c. people will accurately state their level of enjoyment and pay accordingly.
d. Brinley will reap significant economic profits from the event.
Answer: a. people will understate their enjoyment of the art in order to "free ride."
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What will be an ideal response?
In the Keynesian model, to understand the determination of income and employment it is necessary to understand
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A. "purchases" labor in a purely competitive labor market.
B. is a monopsonist.
C. faces a perfectly inelastic labor supply curve.
D. has a perfectly elastic labor demand curve.