A friend of yours receives a government voucher for an apartment in a public housing project. This apartment represents
A. the drop-in-the-bucket problem.
B. a public good.
C. a government-sponsored good.
D. the free-rider problem.
Answer: C
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Refer to Figure 13-1. Ceteris paribus, a decrease in households' expectations of their future income would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Eminent domain _____
a. is when government forces holdouts to sell b. can be used by special interest for public gain c. is the only way to solve the holdout problem d. a and b e. b and c
A rightward shift of long-run aggregate supply due to technology advances without any change in aggregate demand
A. increases the price level without any change in real GDP. B. results in a lower price level. C. will leave real GDP unchanged. D. increases the price level along with an increase in real GDP.
The standard interpretation of the Ricardian model is that differences in factor endowments between countries account for differences in labor productivity
a. True b. False Indicate whether the statement is true or false