How do public goods differ from private goods?
What will be an ideal response?
A private good is characterized by the principle of rival consumption, which means that one person's consumption of a good reduces the amount available for someone else. A public good is not characterized by the principle of rival consumption. Public goods can be used by more people at no additional cost. Further, once the good is produced, it is usually impossible, or at the very least difficult, to exclude anyone from consuming it.
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Combating recession may require the government to
a. decrease aggregate supply. b. increase aggregate demand. c. decrease aggregate demand. d. decrease government spending.
Acreage allotments, which limit the number of acres planted with a particular crop, has an effect on the crop's price which is:
A. Consistent with a price-support program B. Contradictory to a price-support program C. Consistent with a price-ceiling for the crop D. Disadvantageous to the farmers of the crop