The "free-rider problem" of public goods refers to:
a. individuals' refusal to pay taxes.
b. individuals' attempts to hide their preferences for collective goods and to avoid paying for them.
c. individuals' over-use of collective goods.
d. the inelasticity of individuals' demands for public goods.
b
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Monetarists argue that the Federal Reserve should allow the money supply to grow:
a. counter to the business cycles. b. faster than 10 percent annually. c. only during recessions. d. at a constant rate.
A positive externality is present whenever: a. the social marginal benefit of an activity exceeds the private marginal benefit. b. the private marginal benefit of an activity exceeds the private marginal cost. c. the social marginal cost of an activity exceeds the private marginal cost
d. none of the above.
Give a complete and concise definition of each of the following terms
a. deliberately erected entry barriers b. inefficiency of monopoly c. price discrimination d. profit-maximizing equilibrium for a monopolist
The equilibrium level of GDP is always accompanied by full employment and stable prices.
Answer the following statement true (T) or false (F)