The market system fails to provide the efficient output of public goods because:
a. people place no value on public goods
b. private firms cannot restrict the benefits from those goods to consumers who are willing to pay for them.
c. public enterprises can produce those goods at lower cost than private firms.
d. public goods create widespread spillover costs.
b
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What is the primary basis for determining the U.S. poverty line?
a. Buying power b. Unemployment rates c. State and federal tax rates d. Median family income
Which of the following explains the "beauty premium" differences in wages?
a. People who spend time on their personal appearance may send a signal that they are more productive workers. b. Personal appearance and intelligence are inversely related. c. The "superstar phenomenon" explains the "beauty premium.". d. Better-looking people are more efficient; thus, they are paid an efficiency wage.
Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch.
In the equilibrium this game, Tracy chooses the ________ branch, and then Amy chooses the ________ branch.
A. bottom; top B. top; bottom C. top; top D. bottom; bottom
Which of the following is an example of capital?
A. Money B. A bulldozer C. A CD D. A U.S. Savings bond