Is education a public good? Focus on whether it meets the two criteria for being a public good
First, consider the nonrivalry-in-consumption characteristics. You may be in an economics class at a large university with several hundred students consuming the same lecture. Is this equivalent to a class with 30 students in which you get the same benefits? Perhaps, but what if we consider a class with several hundred first-graders. Would we expect the same learning to occur as in a smaller class? Education has some nonrivalry-in-consumption characteristics, but these appear limited, especially at lower educational levels. Is it difficult or costly to exclude nonpayers? Even if you attend a large university, nonpayers are still effectively excluded from transcripts and degrees, the benefits most students seek. At lower educational levels, exclusion could be as simple as a guard at the door.
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Which of the following is an example of a capital input?
a. a computer b. a share of stock c. an hour of a worker's time d. $50,000
Which of the following is part of the cost of income transfers?
A) Tax-collecting agencies cost money to administer. B) Taxing incomes encourages people to work harder. C) Income transfers make the results more unfair. D) Income transfers increase the size of the economic pie. E) Income transfers are a similar to allocating resources using a lottery.
If the slope of the indifference curve for goods X and Y is -2, then the marginal rate of substitution is
A. 0. B. 1/2. C. 2. D. infinite.
Which of the following statements is correct?I.If other factors are held constant, the level of employment in the economy determines real Gross Domestic Product (GDP).II.According to classical economists, only voluntary unemployment exists in the long run.
A. I only B. II only C. Both I and II D. Neither I nor II