my answers to econ mid2

D people can be prevented from using it 5

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: revented from using it. 5. Excludability is the property of a good whereby a. one person's use diminishes other peoples’ use. b. a person can be prevented from using it. c. a good is private, not public. d. a good is public, not private. 6. Goods that are excludable include both a. natural monopolies and public goods. b. public goods and common resources. c. common resources and private goods. d. private goods and natural monopolies. 7. Goods that are not excludable include both a. private goods and public goods. b. natural monopolies and common resources. c. common resources and public goods. d. private goods and natural monopolies. 8. Both public goods and common resources are a. rival in consumption. b. nonrival in consumption. c. excludable. d. nonexcludable. 9. Both private goods and natural monopolies are a. rival in consumption. b. nonrival in consumption. c. excludable. d. nonexcludable. 10. Goods that are not excludable are usually a. higher priced than excludable goods. b. higher priced than rival goods. c. in short supply. d. free of charge. 11. When something of value has no price attached to it, a. externalities will be present. b. production of the product has no cost. c. government should not intervene to produce the product. d. private companies will eventually produce the product, and the good will no longer be free. 12. A view of a spectacular sunset along a private beach is an example of a a. private good. b. public good. c. nonrival but excludable good. d. rival but nonexcludable good. 13. Bill owns 3 acres of beautiful wooded land. When Bill decides to move to be closer to his grandchildren, he donates the land to the state with the understanding that the land will be used as a state park. This state park is large enough that it is not congested. It is an example of a good that is a. both rival in consumption and excludable. b. neither rival in consumption nor excludable. c. nonrival in consumption and excludable. d. rival in consumption and nonexcludable. 14. When a good is rival in consumption, a. one person's use of the good diminishes another person's ability to use it. b. people can be prevented from using the good. c. no more than one person can use the good at the same time. d. everyone will be excluded from obtaining the good. Chapter 13 1. Economists assume that the typical person who starts her own business does so with the intention of a. donating the profits from her business to charity. b. capturing the highest number of sales in her industry. c. maximizing profits. d. minimizing costs. 2. Economists normally assume that the goal of a firm is to (i) sell as much of their product as possible. (ii) set the price of the product as high as possible. (iii) maximize profit. a. b. c. d. (i) and (ii) are true. (ii) and (iii) are true. (iii) is true. (i) and (iii) are true. 3. Economists normally assume that the goal of a firm is to earn (i) profits as large as possible, even if it means reducing output. (ii) profits as large as possibl...
View Full Document

This note was uploaded on 01/27/2014 for the course ECON 1010 taught by Professor Jonathanpritchett during the Fall '12 term at Tulane.

Ask a homework question - tutors are online