Why are public goods provided by the government, rather than by the private sector?
A) because they are large-scale projects that require the kind of financing only governments can generate through the issuance of bonds
B) because it would be difficult for a private sector firm to make a profit providing a public good, since consumers who benefit would not have to pay for it
C) because no one really benefits from public goods
D) because private sector firms do not have the foresight to plan for public goods
B
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Why would acquiring 20,000 acres of land in Florida to build an amusement park be more difficult than acquiring 20,000 acres of land in Florida to grow oranges?
What will be an ideal response?
For any item (physical or financial) to be used as money, the item must be
a. a precious metal, such as gold or silver b. accepted as a medium of exchange c. divisible into smaller units by at least 10, otherwise most exchanges cannot occur, rendering useless the money form d. paper (fiat) backed by a precious metal e. portable
The game in the figure shown is a version of:
A. the prisoner's dilemma. B. a sequential game. C. a repeated game. D. the first-mover advantage.
Which scenario best exemplifies Gresham’s law?
a. Marla has faith in the value of paper money because she knows it can be exchanged for goods and services. b. Hiro prefers to invest his money rather than keep it in physical form or in a deposit account. c. Charlie does not trust banks, so he keeps all his money in the form of physical currency. d. Indira has silver coins she could use to make a purchase, but she prefers to use paper money.