Why are public goods provided by the government, rather than by the private sector?
A. because it would be difficult for a private sector firm to make a profit providing a public good, since consumers who benefit would not have to pay for it
B. because they are large-scale projects that require the kind of financing only governments can generate through the issuance of bonds
C. because private sector firms do not have the foresight to plan for public goods
D. because no one really benefits from public goods
Answer: A
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What types of "rules" are a part of the rules of the game?
a. laws b. customs c. manners d. all of the above are parts of the rules of the game in economic systems
Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine.
At the private market equilibrium, the price of each dose is:
A. $70. B. $80. C. $50. D. $60.
Which one of the following is not a source of market failure?
A. public goods B. price increases C. imperfect information D. externalities
If a group of professionals successfully lobby the government to require workers in their profession to have a license, the most likely result will be a(n)
a. reduction in the supply of such professionals and a decrease in their wage rate b. reduction in the demand for such professionals and an increase in their wage rate c. reduction in the supply of such professionals and an increase in their wage rate d. reduction in the demand for such professionals and a decrease in their wage rate e. increase in the demand for such professionals and an increase in their wage rate