Discuss how economists measure the following: (i) aggregate expenditure, (ii) aggregate income, and (iii) aggregate output
What will be an ideal response?
They are all measured by GDP.
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The free rider problem is a situation in which
(a) effluents such as CFCs combine with ozone and decrease concentrations of that protective chemical. (b) one agent secures benefits that others pay for. (c) there are excessive subsidies given to polluting buses or other forms of mass transit. (d) perfect property rights exist.
Socially inefficient outcomes are possible when
A) uninformed parties want to avoid opportunistic behavior by informed parties. B) informed parties engage in opportunistic behavior against uninformed parties. C) those in charge are risk neutral. D) workers do not own the firm.
Which one of these is not a characteristic of capitalism?
A. Central planning B. Private property C. The price mechanism D. Competition
The amount of pizzas that consumers want to buy per week is reflected in the equation P = 15 - .02Qd, where Qd is the amount of pizzas purchased per week and P is the price of pizzas. On the basis of this information, we can say that
What will be an ideal response?