The free-rider problem occurs for:
A. private goods and public goods.
B. private goods but not public goods.
C. public goods but not private goods.
D. neither public nor private goods.
Answer: C
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A monopolist
a. can charge whatever price it wants b. charges more than almost any consumer is willing to pay c. is constrained by marginal cost in setting price d. is constrained by demand in setting price e. always earns an economic profit
Individuals will only pursue an activity if: a. E(MB) E(MC)
b. E(MB) = E(MC). c. E(MB) > E(MC). d. E(MB) < E(MC).
Microeconomics only looks at the behavior of one consumer or one firm in a market, while macroeconomics looks at the behavior of an entire industry or group of consumers
Indicate whether the statement is true or false
In theory, ___________ advocates the abolition of private property.
A. Capitalism B. Communism C. Socialism D. Fascism