Under communal property, effort is:
A) divorced from payment, so there is great incentive to work.
B) divorced from payment, so there is little incentive to work.
C) rewarded with payment, so there is great incentive to work.
D) rewarded with payment, so there is little incentive to work.
Answer: B) divorced from payment, so there is little incentive to work.
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A change in which of the following changes the supply of dollars and shifts the supply curve of dollars?
I. an increase in the exchange rate II. a change in interest rates III. a decrease in the expected future exchange rate A) I B) I and II C) II and III D) I, II, and III
The possibility that someone can reap the benefits of being a free rider occurs
a. when negative externalities exist in the market b. only when the market is in equilibrium c. when positive externalities exist in the market d. only if government is willing to subsidize the market e. only if government actually produces the good, such as a highway
Which of the following is true about income inequality?
A. Inequality tends to diminish as the population increases. B. Inequality tends to be greatest in the poorest countries. C. Inequality tends to get worse as a country develops. D. Inequality is not an issue for developed countries.
Refer to the above figure. Which one of the following statements is TRUE with regard to the economy depicted in the graph?
A. Starting from point A, this economy does not incur any opportunity cost in producing more wool. B. In moving from point A to point B, the economy is experiencing economic growth. C. Starting from point A, this economy does not incur any opportunity cost in producing more bread. D. In moving from point A to point B, the economy produces 30 additional bales of wool at an opportunity cost of 250 loaves of bread.