If a good is non-rival in consumption, then the marginal cost of adding another user for this particular good is _____
a. 1
b. 2
c. -1
d. 0
d
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If the spending multiplier is 3 and the desired amount of increase in real GDP is $90 million, then by how much would government spending have to increase? a. $270 million. b. $90 million
c. $30 million. d. $0.
A tit for tat strategy a. Generates the same result as the prisoner's dilemma
b. Provides a way to punish rivals who defect from the jointly optimum behavior c. Means that a firm would cooperate as long as other firms cooperated. d. Both b. and c. are true
If an economy were experiencing a high rate of unemployment as the result of weak aggregate demand, a Keynesian economist would be most likely to recommend
a. a reduction in taxes coupled with a reduction in government expenditures of equal size. b. an increase in government expenditures coupled with an increase in taxes of equal size. c. a reduction in taxes, without any offsetting reduction in government expenditures. d. maintenance of a balanced budget.
A low sacrifice ratio would make a central bank less willing to reduce the inflation rate
a. True b. False Indicate whether the statement is true or false