3. For the $6 option, the bus would be the cheaper option. For the $10 option, they would cost
the same. For the $14 option, the airplane would be cheaper.
6. Private ownership means to be in control of a good or resource and othe
4. B, D, and E are public goods because anyone can use them freely. They dont have any rivalry because
it was created for everyone to use. No one can be excluded from using these goods. A and C are not
public goods because not eve
2. To find the percentage growth of GDP it is the nominal GDP percentage growth minus the deflator
GDP percentage growth. 6%-4%=2%
4. It would increase GDP because it was produced during the current year. The profits will contribu
2. a. The quality of housing would decrease because of the price ceiling.
b. The amount of housing will also decrease because there will be a lower amount of people willing to
rent for such a low rate.
c. The landlords will have l
3. No because government actions with often lead to inefficiency in the economy because of the
shortsightedness effect, rent-seeking, special interest effect, and there are weak incentives to keep costs
5. Actions by specia