Determine if each of the goods below displays any of the following characteristics:
(i) rivalry
(ii) nonrivalry
(iii) excludability
(iv) nonexcludability
a. attending a Packers game at Lambeau Field
b. online encyclopedia Wikipedia
c. a shopping mall on Black Friday
d. an online defensive driving class
e. a Tesla Model S electric car
a. nonrival but excludable since admission requires purchase of a ticket
b. nonrival and nonexcludable
c. rivalry due to congestion although entry to the mall is nonexcludable
d. nonrival but excludable because those who did not pay for the class may not take the class
e. rival and excludable
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Decision trees are commonly used to illustrate how firms make business decisions that depend on the actions of rival firms. A decision tree has boxes that contain points that represent when firms must make the decisions contained in the boxes
What are these points called? A) decision options B) decision nodes C) option points D) either-or terminals
All of the following location characteristics can result in higher worker salaries except which one?
A) short commute time B) poor climate C) high cost of living D) unpleasant work conditions
If the Federal Reserve System wanted to tighten the money supply, the most powerful combination of actions would be to
a. raise reserve requirements, lower the discount rate, and buy government securities. b. raise reserve requirements, lower the discount rate, and sell securities. c. lower reserve requirements, raise the discount rate, and buy government securities. d. raise reserve requirement, raise the discount rate, and sell government securities.
Which of the following is false?
A. Tariffs on imports generate revenue for the government. B. Tariffs on imports generate government revenue as long as the domestic price is larger than the world price plus the tariff. C. Tariffs on imports do not generate government revenue if the domestic price is larger than the world price plus the tariff. D. An import quota does not generate government revenue.