Four roommates share an off-campus house and equally share the cost of rent. Everyone says that she values a clean house, yet the house is usually dirty. To an economist, a clean house in this case represents
a. a common resource problem.
b. a public good.
c. a club good.
d. All of the above are correct.
a
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If the union wants to follow the strategy of maximizing member's income, wages should be set
A) above the market clearing wage rate. B) such that all that wanted to work could work. C) at the market clearing wage rate. D) at the point at which the price elasticity of demand equals 1.
An exclusive contract:
a. makes it illegal to price discriminate. b. requires a buyer to purchase all products from a specified supplier. c. requires a buyer not to purchase any requirements from the competitor of a specified supplier. d. requires the buyer to purchase a second product as a condition of receiving the one he wants. e. requires a seller to market its product within a limited geographic territory.
Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the main factor that will readjust the economy is the:
a. Nominal and real exchange rates. b. Real risk-free interest rate. c. Real wage rate. d. Money supply. e. Price level.
The framers of the U.S. Constitution sought to design a political system that would
What will be an ideal response?