Which of the following is a valid reason for government provision rather than market provision of certain economic goods and services?
a. When the government provides economic goods, they are free; costs are only incurred when such goods are provided by private firms.
b. Voters tend to be better informed than market consumers.
c. Decision makers in the market are motivated by self-interest, whereas, political decision makers are primarily motivated by the desire to help others.
d. Public goods tend to be undersupplied through the market since it is difficult for potential suppliers to withhold such goods from nonpaying consumers, while the government can use taxes to overcome this problem.
D
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In the long run, a tax placed on a perfectly competitive industry should
A. increase the number of firms. B. not affect the number of firms. C. decrease the number of firms. D. One cannot tell
One criticism of the present-aim standard of rationality is that it:
A. assumes that people's goals are a choice variable. B. can be used to "explain" virtually any bizarre behavior. C. cannot explain why people do things that are not in their narrow self-interest. D. only accounts for a narrow range of observed behavior.
Suppose there are 12 million part-time workers and 104 million full-time workers in an economy. Four million of the part-time workers switch to full-time work. We can conclude that
A. the official unemployment rate will fall. B. the official unemployment rate will rise. C. the official unemployment rate will remain unchanged. D. the size of the labor force will increase.
A two-way network linking five users creates how many potential network connections?
A. 20 B. 30 C. 5 D. 10