Lou buys a Star Wars: The Force Awakens poster at a garage sale for $30 and resells it on eBay to Kyle for $60. Which of the following statements is true?
A) The transaction is economically inefficient.
B) The transaction has made Lou and Kyle better off.
C) The transaction has made Lou better off and Kyle worse off.
D) It is not possible for Kyle to enjoy any consumer surplus from this transaction.
B
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The relationship between distance traveled in 5 hours and speed shown in the figure above is
A) direct, linear. B) inverse, linear. C) direct, non-linear. D) inverse, positive. E) direct, negative.
Signals are
A) used by economic decision-makers to inform others about their plans. B) the method by which government planners inform economic decision-makers about the types of decisions they should make. C) the method by which firms determine their profit maximizing quantity. D) compact ways of conveying to economic decision makers information needed to identify industries where more resources are needed.
The catch-up effect says that countries with low income can grow faster than countries with higher income. However, in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables
that affect productivity. Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.
According to Elinor Ostrom's view of The Tragedy of the Commons:
A. The only way to prevent the collapse of the commons is government intervention. B. The only way to prevent the collapse of the commons is to privatize the commons so that it is owned by a single individual. C. Individuals will create institutions to prevent the collapse of the commons. D. Individuals will use the commons beyond the socially efficient point.