A good is rival in consumption if:
a. the supplier of that good can prevent people who do not pay from consuming it.
b. the supplier of that good cannot prevent people who do not pay from consuming it.
c. the same unit of the good cannot be consumed by more than one person at the same time.
d. there is no free-rider problem.
Ans: c. the same unit of the good cannot be consumed by more than one person at the same time.
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The figure above shows the market for coffee. If more coffee plantations are planted in Brazil and Vietnam so that the supply of coffee increases, the efficient quantity of coffee will ________ and the consumer surplus will ________
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
A large public debt will not bankrupt the federal government because it can refinance the debt or increase taxes to pay it.
Answer the following statement true (T) or false (F)