Which of the following individuals would be most negatively affected by anticipated inflation?
A) a retired railroad engineer who receives a fixed income payment every month
B) a union contractor whose pay is adjusted based on changes in the CPI
C) a full-time employee at a pizza parlor who makes more than the minimum wage
D) a student who borrows $10,000 at a nominal interest rate of 5% to finance educational expenses
Answer: A
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A private good is
A) a good that is rival and excludable. B) a good that is rival and nonexcludable. C) a good that is nonrival and excludable. D) a good that is nonrival and nonexcludable.
In the case of a nonexcludable public good, the market will fail to produce the good because of the free rider problem.
Answer the following statement true (T) or false (F)
Refer to Figure 9.7. Because of this policy, total producer surplus including funds received from the government will be at least
A) $10,000. B) $40,000. C) $80,000. D) $100,000. E) $160,000.
Government economic policies are designed to have the biggest impact on _____
a. cyclical unemployment b. frictional unemployment c. structural unemployment d. seasonal unemployment