Which of the following would be viewed as a common property problem?
A) Your property is burglarized.
B) Vandals damage your property.
C) People pick all of the flowers in a public park.
D) To be safe you must lock your door at night.
C
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Monetary policy credibility has the benefit of ________
A) stabilizing inflation in the short run when faced with positive demand shocks B) stabilizing economic activity in the short run when faced with positive demand shocks C) transmitting the effect of aggregate demand shocks onto short-run aggregate supply D) enhancing the job opportunities of Federal Reserve officials after they leave the central bank
Suppose a competitive industry produces output, Q, using some input, i, where the price of the output is PQ and the input price is Pi. Efficient use of resources requires that
A) MRPi = MPi. B) MRPi = Mpi/PQ. C) MRPi = MPi PQ. D) MRPi = Pi.
Health care markets may be inefficient because of
A. poor information. B. adverse selection. C. moral hazard. D. all of these answer options are correct.
The government often enacts regulation that benefits producers because
a. the government seeks to regulate in the best interest of the public b. consumers have less information than producers and therefore seek government protection c. consumers have a strong interest in matters that affect their standard of living d. producers have a strong interest in matters that affect their specialized source of income e. producers seek to act in the best interest of the public