Term
| Black markets that operate outside the legal system are often characterized by |
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Definition
| the use of violence for settling disputes. |
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Term
Which of the following is the best example of a public good? a. Long distance telephone service b. national defense c. and amusement park d. the electric service of a public utility |
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Definition
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Term
| Manny's bar and grill is next door to a franchised fast food resaurant near a busy freeway exit. Essentially the menus food quality, atmosphere, and service are equal at the two restaurants. never the less the nationally franchised restarant can attract more customers evern though prices are higher. This situation is |
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Definition
| one in which the national franchise provieds uninformed consumers with valuable information that reduces their risk of being unsatisfied with the purchase |
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Term
| Consider tow goods-one that generates external benfits and one that generates external costs. A competivitve market economy would tend to produce too... |
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Definition
| little of the good that generates external benefits and too much of the good that generates external cost. |
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Term
| Public goods are not likely to be provided efficently by the private sector because |
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Definition
| there is no easy way to exclude no paying customers |
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Term
| When analyzing public sector decision making, economic theory assumes that voters, politicains and government officials will. |
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Definition
| respond to changes in personal benifit when voting. |
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Term
For which one of the following goods would you expect the demand to be most elastic a. salt b. gasoline, short run c. automobiles d. chevrolet automoblies |
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Definition
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Term
A 20 percent increase in the price of sugar reduces sugar consumption by about 10 percent. Such a price increase causes households to a. spend less on sugar b. spend more on sugar c. spend the same amount as before |
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Definition
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Term
| the three basic legal forms of business enterprises are |
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Definition
proprietorships, partnerships, and corporations. |
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