The free-rider dilemma occurs in the provision of public goods because an individual can realize the benefits of someone else's purchase (consumption) of a public good.
Answer the following statement true (T) or false (F)
True
A free rider is an individual who reaps direct benefits from someone else's purchase (consumption) of a public good.
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If a firm lowered the price of the product it sells and found that total revenue did not change, then the demand for its product is
A) perfectly inelastic. B) relatively elastic. C) perfectly elastic. D) unit elastic.
As a result of low interest rates on CDs and the perceived riskiness of alternative investments following the financial crisis of 2007-2009, the bond market was affected in all of the following ways EXCEPT:
A) higher demand for bonds B) higher real interest rates C) lower nominal interest rates D) higher price of bonds
Interest earned on funds compounds because in future years, interest is earned on ________.
A) the principal and interest received in previous years only B) interest received in previous years only C) principal only D) future values
To assess whether or not a good is normal or inferior, economists are interested in the cross price elasticity of demand
a. True b. False Indicate whether the statement is true or false