Why do people refuse to pay for public goods?
What will be an ideal response?
People often refuse to pay for public goods because these goods are non-excludable and non-rival in consumption. A person can enjoy a public good without paying for it because nobody can be excluded from its consumption and consumption by one individual does not reduce the amount available for consumption by others.
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A(n) __________ in consumer spending will __________ the demand for reserves, resulting in a __________ federal funds rate
A) increase; raise; lower B) increase; raise; higher C) decrease; raise; higher D) decrease; lower; higher
With faster inflation, money in the form of ________ becomes more desirable
A) currency B) non-interest-bearing checkable deposits C) interest-bearing checkable deposits D) All of these forms are equally desirable when inflation increases.
The short run is that period during which there are no fixed commitments
a. True b. False Indicate whether the statement is true or false
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Mike's opportunity cost of producing one pound of cheese is ________ car(s).
A. 1/250 B. 500 C. 1/500 D. 1/10