What are the key characteristics of a public good?
What will be an ideal response?
A public good is not subject to the principle of rival consumption in the sense that it can be provided to different individuals without additional costs. A public good is also subject to the free-rider problem in the sense that persons can benefit from the good without paying for it.
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According to the above table, if the marginal revenue product is $48, how many workers will the profit maximizing monopsonist hire?
A) 5 B) 6 C) 7 D) 8
Jan has an income of $30,000 and pays $4,500 in taxes. When Jan's income rises to $40,000, her tax bill rises to $6,500. What is Jan's marginal tax rate?
A. 5 percent. B. 15 percent. C. 16.25 percent. D. 20 percent.
Flexible exchange rates are determined by
A) the government of the exporting country. B) the government of the importing country. C) the forces of supply and demand. D) the IMF.
Which of the following examples would most likely be subject to selection bias?
A. a study that randomly sampled 100 hunters in Minnesota to determine if newly implemented state hunting limits would reduce the number of hunting trips they took in the state each year B. a study that randomly sampled 100 tourists of legal drinking age on the Las Vegas Strip to determine the average amount they spend each day on alcoholic beverages while in Las Vegas C. a study that randomly sampled 100 people issued speeding tickets on the New Jersey Turnpike to determine if drivers believe the New Jersey Department of Transportation should raise the current 65 mph speed limit to 75 mph D. a study that randomly sampled 100 passengers at Chicago O'Hare International Airport to get their opinions about decreased legroom on commercial airplanes