Which of the following is true of a public good?
a. It is nonexcludable and nonrival in consumption.
b. The private market will produce more than the efficient amount.
c. It must be provided by the government.
Ans: a. It is nonexcludable and nonrival in consumption.
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Over the past 70 years, which of the following has occurred?
i. The service sector has grown so that now about 80 percent of workers are now employed in the service industry. ii. The manufacturing sector has shrunk, so now about 20 percent of workers are now employed in the production of goods. iii. The percentage of workers employed in the service industry has increased steadily. A) i, ii and iii B) i and iii C) ii only D) i only E) ii and iii
According to the cost disease of the personal services, service activities that require direct personal contact
a. tend to fall in price relative to other goods and services. b. tend to rise in price relative to other goods and services. c. follow price patterns similar to other goods and services. d. tend to move up and down in price ignoring the rest of the market.