If people come together through the political process and agree to pay taxes and make group decisions about the quantity of public goods produced, they can defeat the free rider problem with laws that require people pay taxes to contribute to public goods
a. True
b. False
Indicate whether the statement is true or false
True
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Under the Soviet system of communism,
A) technological progress was slow because managers had little incentive to develop new technologies. B) managerial pay was determined by the extent to which managers could lower the per-unit costs of production. C) the per-worker production function in the Soviet Union shifted up more rapidly than production functions in other countries. D) competitive pressures in the Soviet Union allowed the country's technological progress to keep pace with the rest of the world.
Suppose that one could determine the amount of income that is pure economic rent. If a law were passed which taxed 50 percent of that rent, what would happen to the amount of work that people perform?
a. It would increase as people seek higher income. b. It would be unchanged. c. It would decrease as people suffer a loss of income. d. It would increase for some and decrease for others.
If the Herfindahl-Hirschman Index in the market for single-use cameras equals 10,000 , then the single-use camera industry is best characterized as
A) a monopoly. B) monopolistic competition. C) an oligopoly. D) perfect competition. E) either a monopoly or monopolistic competition.
If the marginal productivity of labor was the sole determinant of household income in the U.S., then
a. no households would be poor according to the official government definition of poverty b. no households would be poor according to a relative definition of poverty c. the distribution of income would be unequal d. every household would have sufficient income to meet biological needs e. there would be no need for government programs to redistribute income