The free-rider problem arises when people:
A. who pay for a good cannot consume it.
B. who do not pay for a good cannot consume it.
C. obtain a good for less than the market equilibrium price.
D. who do not pay for a good cannot be excluded from consuming it.
Answer: D
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The factors of production include all goods and services produced in an economy.
Answer the following statement true (T) or false (F)
In the circular flow model, households supply resources such as labor services in the factor market
Indicate whether the statement is true or false
When there is an Equilibrium (or a Nash Equilibrium), we expect that:
a. once the firms get there, no one will change their strategy. b. firms will tend to select a randomized strategy. c. neither firm will care what it does. d. this is always a dominated strategy.
Why are cows and chickens less prone to becoming extinct?
a. They are usually consumed in huge numbers b. They are mainly privately owned c. They are a part of common resources d. Poaching these animals for their meat is banned by the government e. They are not used for commercial purposes