Why are public goods non-rival in consumption? Explain with a real-world example
What will be an ideal response?
A public good like national defense is non-rival in consumption. This is because the enjoyment of national security by a citizen of a country does not reduce the level of security enjoyed by others.
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The above figure gives your budget line between CDs and magazines. Which combination of CDs and magazines is not affordable?
A) combination a B) combination b C) combination c D) both combinations b and d
GDP is not a complete measure of well-being
Indicate whether the statement is true or false
A crawling peg refers to:
a. a large and sudden currency depreciation. b. a fixed exchange rate regime in which the currency is adjusted very frequently to reflect market conditions. c. a managed or dirty float, depending on the business cycle. d. a drag on exchange rate adjustment caused by imperfect markets
A firm hires labor, capital, and land to produce grapefruits. Currently the marginal product of the last unit of labor input is 40, the marginal product of the last unit of capital input is 60, and the marginal product of the last unit of land input is 200. The market wage is $20 and the market price for capital is $30. If the firm is using the optimal combination of inputs, then the price of land is
A. $4. B. $40. C. $100. D. indeterminate from the given information.