A lighthouse is a public good
A) because it doesn't cost any more to light the way for 105 ships than it does to light the way for 104 ships, but for no other reason.
B) because there is no way to prevent those who haven't contributed to the lighthouse from seeing better because of it, but for no other reason.
C) because the government produces it, and for no other reason.
D) for the reasons in A and B together.
E) for the reasons in A, B, and C together.
D
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Monetary policy has medium-run effects on which of the following?
A) the level of output but not its composition B) both the level and composition of output C) the nominal interest rate D) the real interest rate E) none of the above
The term "property rights" refers to
A) the physical possession of a house or any other property which the owner legally purchased. B) the ability to exercise control over one's own resources within the confines of the law. C) the government's right to appropriate land from wealthy land owners to redistribute to peasants. D) the right of a business not to have its assets confiscated by the government in the event that the business is accused of committing fraud.
Which statement is unique to the transaction broker relationship?
A) The licensee must disclose all known facts that materially affect the value of the real property. B) The buyer or the seller must give written consent to enter into the brokerage relationship. C) The customer is not responsible for the acts of the licensee. D) The agent is obligated to a duty of obedience.
The price of a cowboy hat is $100. Willie is willing to pay $130, Waylon is willing to pay $100, and Merle is willing to pay $85. All of the following statements are true EXCEPT:
A) Merle's consumer surplus is $15. B) The sum of consumer surplus will be $30. C) Waylon's consumer surplus is $0. D) Only Willie and Waylon will purchase the cowboy hat. E) Willie's consumer surplus is $30.