Private markets are most likely to produce goods that are
a. neither rival nor excludable
b. rival, but not excludable
c. socially desirable, regardless of whether they are rival or not
d. both rival and excludable
e. rival, but not profitable
D
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When there is an external benefit, the unregulated market
A) overproduces the good or service. B) underproduces the good or service. C) reaches the most efficient solution. D) maximizes public welfare.
When Fed policy is being used to offset a contractionary gap, which of the following variables decreases as a result? a. Aggregate demand
b. Investment. c. Net Exports. d. None of the above variables decreases as a result of Fed policy to offset a contractionary gap..
An outward shift in the entire production possibilities frontier
A. represents economic decline. B. means that previous levels of production are now unobtainable. C. means that the only way the economy can increase the production of one good is by producing less of an alternative good. D. represents economic growth.
Which of the following games might a risk-averse person play?
a. a game where she has a 50 percent chance of winning $1 and a 50 percent chance of losing $1 b. a game where she has a 50 percent chance of winning $100 and a 50 percent chance of losing $100 c. a game where she has a 60 percent chance of winning $1 and a 40 percent chance of losing $1 d. a game where she has a 40 percent chance of winning $1 and a 60 percent chance of losing $1