Explain why a freeway isn't always considered to be a pure public good
What will be an ideal response?
For the greater part of the day a freeway could be considered to be a pure public good since one person's enjoyment of the good doesn't interfere with anyone else's. However, that breaks down when we consider rush hour traffic in the morning and early evening. Commuters traveling during these times do indeed interfere with everyone else's enjoyment of the freeway but adding (albeit incrementally small amounts) to the commute time of everyone else traveling at that time.
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The current account is the sum of ________
A) net exports, net factor income from abroad and net transfers from abroad. B) consumption, investment, and government expenditure C) net exports and net investment from abroad D) net exports and net transfers from abroad
Suppose the government wants to reduce the illegal importation of exotic animals used as pets and tries to achieve this goal by interrupting the supply of illegally imported exotic animals
If the demand for these animals is highly elastic, this government effort will result in A) a small reduction in the quantity of exotic pets demanded. B) a large reduction in the quantity of exotic pets demanded. C) no change in the quantity of exotic pets demanded. D) an increase in the quantity of exotic pets demanded.