Which of the following is not a public good?
A. A coastal lighthouse
B. National defense
C. A flood-control levee
D. The latest Walt Disney movie
Answer: D
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Polar ice cap shrinks further and thins With global warming of the planet, the polar ice cap is shrinking. As the Arctic Sea expands, more underwater mineral resources will be accessible
Countries are staking out territorial claims to parts of the polar region. Source: The Wall Street Journal, April 7, 2009 Explain how ownership of these mineral resources will influence the amount of damage done to the Arctic Sea and its wildlife.
The behavior of the perfectly competitive firm: a. theoretically leads to an inefficient allocation of resources
b. maximizes the benefits to consumers, given the resources available to the economy. c. reduces output in order to raise prices in the short-term. d. results in excess capacity and inefficiency.
Assume the production of a good causes a negative externality. In the market equilibrium, the marginal consumer values the good at
a. less than the social cost of producing it. b. less than the private cost of producing it. c. more than the social cost of producing it. d. more than the private cost of producing it.
More of a tax is borne by firms:
A. the more elastic is demand and the less elastic is supply. B. the less elastic is demand and the less elastic is supply. C. the more elastic is demand and the more elastic is supply. D. the less elastic is demand and the more elastic is supply.