If, at a low cost, you cannot prevent a person from benefiting from the consumption of a good you produced, the good is
A. excludable.
B. nonexcludable.
C. nonrival in consumption.
D. rival in consumption.
Answer: B
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Let "C = Ca + by" define the consumption function. The term "b" is known as
A) autonomous consumption. B) induced consumption. C) the marginal propensity to save. D) the marginal propensity to consume.
The federal government has encouraged home ownership through ________
A) an increase in home prices B) an increase in domestic interest rates C) a decrease in the implicit rent on residential housing D) allowing mortgage interest to be tax deductible
Which of the following holds that business cycles are primarily due to changes in technology and does not invoke any monetary or demand-side forces?
A) the real business cycle theory B) the efficiency wage theory C) rational expectations hypothesis D) Keynesian economics
One example of Ricardian rent is:
a. rent paid to landlords under price controls. b. the difference between the price of a highly demanded unique piece of artwork and the opportunity cost of maintaining it. c. the amount paid to a seller above the equilibrium price of tourist class tickets in order to receive higher quality seats in first class. d. the price rise of wool from a disease among sheep.