Lunch in Jamie's dorm is an all-you-can-eat buffet, served from 11 a.m. until 1 p.m. By noon, the buffet is picked over, and by 12:30, there are very few popular items left. The garbage bins, though, are full of food. The buffet in Jamie's dorm is an example of:
A. the tragedy of the commons.
B. an efficient subsidy.
C. excess supply in the market.
D. a good with positive externalities.
Answer: A
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Indicate whether the statement is true or false
In the capital market, the rental price is what a:
A. consumer pays to gain permanent ownership of a factor of production. B. producer pays to use a factor of production for a certain period or task. C. consumer pays to use labor or land services for a certain period or task. D. producer pays to gain permanent ownership of a factor of production.
When graphing a worker's indifference curves in Probability of Injury (x-axis) versus Wage (y-axis) space, Al's indifference curves are steeper than Pete's indifference curve. In this case,
A. both are risk neutral. B. Al is more risk loving than Pete. C. Al will end up receiving a higher wage than Pete. D. Al requires a greater wage increase than Pete in order to willingly take on more risk. E. Al will only accept a job if it offers no risk of injury.
When a perfectly competitive firm is in long-run equilibrium, economic profits
A) are positive. B) are zero. C) are negative. D) may be positive, zero or negative depending upon costs.