A good is nonexcludable if:
A. there is no way to prevent a person from consuming or using it.
B. more than one person can consume it at the same time without affecting its value to others.
C. consumption of it involves perfect rivalry.
D. consumption is completely excludable.
A. there is no way to prevent a person from consuming or using it.
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Using the ISLM model, explain and show graphically the effect of a fiscal expansion when the demand for money is completely insensitive to changes in the interest rate. What is this effect called?
What will be an ideal response?
The value of a network
A) is related to how many are in the network. B) is not related to how many are in the network. C) is related to its impact on diminishing marginal returns. D) none of these choices.
Which of the following is considered to be the main disadvantage of the sole proprietorship form of business organization?
a. The proprietor and the firm are legally inseparable. b. The proprietor has personal independence. c. The focus of the proprietorship is on local markets. d. The access to local and family labor promotes legal dependence. e. The lack of a bureaucratic structure impedes growth.
Because of the problem of adverse selection,
A. everyone is typically charged a lower premium. B. low-risk individuals may have a hard time finding insurance worth buying. C. high-risk individuals may have a hard time finding insurance worth buying. D. individuals who buy insurance act more recklessly.