Forms of free riding behavior
a. Always leads to underproduction
b. Occur in both external cost and public goods cases
c. Does not occur with common property resources, unlike public goods cases
d. Occurs with private goods, public goods and common property resources
b
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The expenditure multiplier measures the change in
A) autonomous spending that results from a change in equilibrium expenditure. B) equilibrium expenditure from a change in induced consumption. C) consumption expenditure for a given change in disposable income. D) equilibrium expenditure that results from a change in autonomous expenditure. E) the price level that results from a change in real GDP.
Suppose that the price of cornflakes is $3 per box and the price of oatmeal is $4.50 per box. Both boxes contain the same number of ounces of cereal. The relative price of cornflakes in terms of oatmeal is
A) 0.67. B) 1.0. C) 0.75. D) 1.50.
China is regarded as one of the emerging nations because
A. China has experienced high population growth. B. per capita real GDP is now higher in China than in the United States. C. economic and political freedoms in China are still limited. D. China has experienced high economic growth.
Government revenue from printing money is referred to as:
A) menu costs. B) seigniorage. C) shoeleather costs. D) excise tax