Which of the following is the best example of a "free" good?
A) HIV/AIDS cocktails freely distributed to people in developing countries
B) The air you are currently breathing
C) Public roads
D) Public schooling in states where education is subsidized
B
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A group of producers who join forces to buy supplies and equipment and to market their output is a(n) ______
A) not-for-profit organization. B) S corporation. C) producer cooperative. D) sole proprietorship. E) cottage industry.
A major problem with household data is that:
a. the income of the households vary greatly. b. the households usually vary in their consumption patterns. c. the households usually comprise of only one individual. d. collecting data from the households is highly inconvenient. e. the number of persons per household varies greatly.
Suppose the typical consumer buys more bananas than oranges. In fixing the basket of goods and services for the purpose of calculating the consumer price index, the Bureau of Labor Statistics
a. ignores the fact that the typical consumer buys more bananas than orange; this procedure does not affect the value of the index. b. ignores the fact that the typical consumer buys more bananas than orange; this procedure results in a potentially-serious bias in the index. c. places more weight on the price of bananas than on the price of oranges; the weights of the two prices are determined by surveying consumers. d. places more weight on the price of bananas than on the price of oranges; the weights of the two prices are determined by the extent to which those prices have changed over the previous year.
Graphically, the presence of an external cost that is ignored by producers can be shown as
A. a market supply curve the same as the market supply curve for which the producers have to pay for the external cost. B. a market supply curve to the right of the market supply curve for which the producers have to pay for the external cost. C. a market supply curve to the left of the market supply curve for where the producers have to pay for the external cost. D. the absence of a market supply curve.