How does a government-sponsored good differ from a public good?
What will be an ideal response?
A public good is characterized by the fact that consumption is not rival and by the presence of the free-rider problem. Government-sponsored goods are private goods that the political process has deemed desirable.
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If a firm in perfect competition charges the market price of $14, then its
a. MR = $14 and its AR < $14 b. MR = $14 and its AR > $14 c. AR = $14 and its ATC = $14 d. AR = MR = $14 e. ATC = MC = $14
The Jones family sells peaches at market price. Which of the following explains why they do this?
a. many buyers and many sellers in their market b. few buyers and few sellers in their market c. few buyers and many sellers in their market d. many buyers and few sellers in their market
When the price of a soft drink from the campus vending machine was $0.60 per can, 100 cans were sold each day. After the price increased to $0.75 per can, sales dropped to 85 cans per day. Over this range, the absolute price elasticity of demand for soft
drinks was approximately equal to A) 0.15. B) 0.60. C) 0.73. D) 1.67.
If you observed that the market price of a good rose, while the quantity exchanged fell, which of the following could have caused the change? a. An increase in supply. b. A decrease in supply
c. An increase in demand. d. A decrease in demand.