Classify the following goods into public goods, private goods, club goods, or common resources with suitable reasons
a. Congested roads
b. Education provided by a university
a. Congested roads are an example of common resources. Congested roads are not excludable as everybody can drive on them. However, they are rival in consumption because, in the presence of congestion, every additional driver slows down the progress of other drivers.
b. Education provided by a university is an example of a private good. It is excludable in nature because people who cannot afford to pay for the classes are prevented from attending it. It is rival in consumption because an additional student reduces the chance of another student getting enrolled.
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A combination of declining real GDP and rising price level is referred to as
A) a trough. B) deflation. C) stagflation. D) a depression. E) an expansion.
Business-related expenses of employees are higher than they otherwise would be due to most business-related expenses being _____
a. frivolous b. accounted for at personal tax rates, not corporate tax rates c. a tax credit for the individual d. nontaxable fringe benefits