When the free-rider problem exists,
a. the market will devote too few resources to the production of the good.
b. the cost of the good will always be more than the benefit of the good.
c. the good will not be produced.
d. entrepreneurs will eventually find a way to make free-riders pay their share.
A
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The main reason for the high price of antiques is that
A. supply is relatively inelastic and demand tends to increase over time. B. supply is relatively elastic and demand tends to increase over time. C. demand is relatively inelastic and supply tends to increase over time. D. demand is relatively elastic and supply tends to increase over time.
The Heckscher-Ohlin model predicts all of the following EXCEPT
A) the volume of trade. B) which country will export which product. C) which factor of production within each country will gain from trade. D) that relative wages will tend to become equal in both trading countries. E) that trade increases a country's overall welfare.
The value of tax land increases as a result of site value taxation only when _____
a. all governments employ it b. surrounding governments do not employ it c. the supply of land is inelastic d. the demand for housing is strong
Regulation of monopolies is justified on the ground that a monopolist sells too less at a too high price
a. True b. False Indicate whether the statement is true or false