The "tragedy of the commons" refers to a phenomenon where
A) people do not internalize an externality.
B) people have distinct property rights to a resource.
C) people overuse a common resource.
D) individuals are not allowed to use a common resource.
C
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Recent research indicates that inflation performance (low inflation) has been found to be best in countries with
A) the most independent central banks. B) political control of monetary policy. C) money financing of budget deficits. D) a policy of always keeping interest rates low.
An increase in the interest rate today leading to a decrease in consumption today violates the law of demand
a. True b. False Indicate whether the statement is true or false
Suppose the US is in a recession while foreign countries that trade with the US are not. How will this affect the US?
A. US imports will fall, US exports will rise, and AD will fall B. US imports will fall, US exports will rise, and AD will rise C. US imports will rise, US exports will fall, and AD will fall D. US imports will fall, US exports will fall, and AD will remain unchanged
What is meant by the term "incentives," and why are they important?
What will be an ideal response?