In a voluntary contributions experiment described at the end of the chapter, the chump is the individual who:
A. is systematically exploited by others.
B. contributes money to fund a public good equal to the benefits they ultimately receive.
C. free-rides.
D. contributes money to fund a public good much less than the benefits they ultimately receive.
Answer: A
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Refer to Figure 9.2. A movement from point d to point b could be caused by a(n)
A) increase in government spending. B) increase in the price of oil. C) increase in taxes. D) decrease in short-run aggregate supply.
If the supply of a good is perfectly inelastic, the price elasticity of supply will equal
A) positive infinity. B) one. C) zero. D) none of the above.
What is the stopping rule for choosing one's years of schooling?
A. end one's schooling when the rate of return to one more year of schooling equals the worker's rate of discount B. end one's schooling when the return from more schooling is zero C. end one's schooling when the worker's rate of discount equals zero D. end one's schooling after college E. end one's schooling when the cost of one more year of schooling is zero
If the prices used in two countries are exactly the same, then a comparison of the per capita GDPs of the two countries provides:
A. some insight into living standards depending on the accuracy of purchasing power parity. B. no insight into living standards. C. some insight into living standards depending on the extent of non-market activities in each country. D. an exact comparison of living standards.