How do public goods differ from common pool resources? Explain
What will be an ideal response?
Public goods are not the same as common pool resources. While both are non-excludable, unlike public goods, common pool resources are rival in consumption. This means that as more of a common pool resource is used, less of the good is available to others. With public goods, however, a single individual's consumption does not affect the quantity of the good that others can consume.
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According to this Application, economist Thomas Malthus observed that social maladies such as the Black Death would temporarily ________ living standards until ________ living standards led to increased population growth
A) lower; higher B) raise; lower C) raise; higher D) lower; lower
The type of monetary policy regime that the Federal Reserve has followed From the 1980s up until the time Ben Bernanke became chair of the Federal Reserve in 2006 can best be described as
A) monetary targeting. B) inflation targeting. C) policy with an implicit nominal anchor. D) exchange-rate targeting.
A central bank can reduce inflation by reducing money supply growth, but it necessarily does so at the cost of permanently raising the unemployment rate
a. True b. False Indicate whether the statement is true or false
Consider the perfectly competitive firm in the figure above. At the profit maximizing level of output, the firm will
A) make an economic profit equal to the area ABCD. B) incur an economic loss equal to the area ABCD. C) make zero economic profit. D) make an economic profit equal to the area AECD.