Which of the following would economists label as an example of the "tragedy of the commons?"

A. The over-fishing of the oceans
B. The use of pesticides on private farm land
C. The use of growth hormone on cattle
D. The neighbor who does not mow his yard

Answer: A

Economics

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Refer to the graph below. Assume the economy is at the initial position of B2. An increase in aggregate demand with a corresponding adjustment in inflation expectations and wages will tend to:



A. Move the economy to point B3
B. Move the economy to point C2
C. Move the economy to point C1
D. Have no effect in shifting the economy from point B2

Economics

One implication of human capital theory is that college graduates should earn substantially less than high school graduates.

Answer the following statement true (T) or false (F)

Economics