The difference between a private good and a public good is that
A) private goods are government-sponsored goods while public goods are government-inhibited goods.
B) externalities are always created in the production process but not in the production of public goods.
C) private goods make us happy while public goods do not.
D) the exclusion principle applies to a private good but not to a public good.
Answer: D
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The IS curve depicts the relationship between
A) aggregate output and the real interest rate. B) investment demand and the real interest rate. C) investment demand and the level of current output. D) national saving and the level of current output.
A union's major source of power is its
a. high-profile leadership. b. ability to increase productivity. c. ability to threaten a strike. d. ability to deny employers the opportunity to bargain over wages.
Which would cause an increase in the demand for product A?
a. A decrease in the price of a complementary product B b. A decrease in the number of suppliers of product B c. A decrease in the price of product A d. An increase in the cost of producing product A
The difference between a price increase and a decrease in income is that:
A. a decrease in income does not affect the slope of the budget line, while an increase in price does change the slope. B. a price increase will increase real income, while a decrease in income will increase real income. C. a price increase does not affect the consumption of other goods, while a decrease in income does. D. None of the statements is correct.