Define public goods. Give an example of a public good. Explain why private firms will not generally produce public goods
What will be an ideal response?
Public goods are goods that bestow collective benefits on members of society. Generally, no one can be excluded from enjoying the benefits of public goods. Private firms will not produce public goods because the benefits cannot be restricted to those individuals who pay for the goods.
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Over the last 100 years in the United States, unemployment reached its highest rate
A) in the 1920s. B) in the 1930s. C) in the 1980s. D) in the 1970s.
As the marginal propensity to consume ________, the value of the multiplier increases
A) decreases slightly B) is constant C) increases D) decreases
"If gasoline were taxed, the price of gasoline would rise. Consequently, the demand for gasoline would fall, causing the price to fall to the original level." This statement is...
What will be an ideal response?
A manager in charge of new product development can hire engineers and market researchers. The annual salary of an engineer is $40,000 while a market researcher receives $20,000. The marginal contribution of engineers and market researchers are:
Based on the above information, if the manager has an annual budget of $140,000 and currently is hiring two engineers and three market researchers, then
A. he is making the correct decision because the last market researcher hired was more productive than the last engineer hired. B. the last dollar spent on an engineer yielded more new products than the last dollar spent on a market researcher. C. he is making the correct decision because engineers make more than market researchers. D. the last dollar spent on a market researcher yielded more new products than the last dollar spent on an engineer.