Differentiate between a public good and a common resource good
A public good is neither rival nor excludable. It is not rival because everyone can consume the good simultaneously. It is not excludable because once the good is produced, it is prohibitively costly to exclude anyone from consuming the good. On the other hand, a common resource is a rival good that is nonexcludable; that is, nonpayers cannot be easily excluded from consuming the good, and when one unit is consumed by one person, it means that it cannot be consumed by another.
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When mortgage loans are securitized, they are
A) issued to borrowers with flawed credit histories. B) issued to borrowers who fail to document their income. C) bundled together by financial institutions and sold to investors. D) guaranteed by the federal government.
Today's industrialized economies
a. have always specialized in capital intensive production b. have always specialized in heavy industry c. began their industrialization in labor intensive production d. began their industrialization in heavy industry then moved into light industry e. none of the above