Explain why a freeway isn't always considered to be a pure public good
What will be an ideal response?
For the greater part of the day a freeway could be considered to be a pure public good since one person's enjoyment of the good doesn't interfere with anyone else's. However, that breaks down when we consider rush hour traffic in the morning and early evening. Commuters traveling during these times do indeed interfere with everyone else's enjoyment of the freeway but adding (albeit incrementally small amounts) to the commute time of everyone else traveling at that time.
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What would be the economic rationale for homeowners associations to host "yard of the month" awards?
What will be an ideal response?
If we assume competitive labor markets, the supply curve of labor when the firm is a monopoly is
A) upward sloping. B) vertical. C) horizontal. D) downward sloping.
The price elasticities of supply and demand affect
a. both the size of the deadweight loss from a tax and the tax incidence. b. the size of the deadweight loss from a tax but not the tax incidence. c. the tax incidence but not the size of the deadweight loss from a tax. d. neither the size of the deadweight loss from a tax nor the tax incidence.
Answer the following statement(s) true (T) or false (F)
1. Most societies share the same three major macroeconomic goals. 2. News of changes in unemployment figures has little effect on the stock market. 3. Unemployment begins to fall as soon as a recession ends. 4. The U.S. Department of Labor considers discouraged workers unemployed. 5. The unemployment rate varies between men and women.