A public good
A) is a good that is usually consumed in public, such as a restaurant meal.
B) is a good people can consume even if they do not pay for it.
C) is a good produced by government.
D) results in an efficient allocation of resources.
E) is a good for which people are willing to pay a very high price.
B
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An association of producers that fixes common prices and output quotas is known as a
A) cartel. B) common selling organization. C) joint-marketing arrangement. D) trade association.
Three landscapers, Allen, Betty, and Christina, are visiting the lawn and garden supply store. Allen is choosing between a mower with a 40-inch blade and a mower with a 28- inch blade. Betty is picking up her mower, which was in for scheduled maintenance. Christina is putting up a For Sale sign advertising her equipment and list of customers. Who is operating in the long run?
a. Allen and Christina b. Betty and Christina c. Allen only d. Betty only e. Christina only
The difference between Gross National Product and Net National Product is the
a. rate of inflation. b. statistical discrepancy encountered in calculating GDP. c. difference between real versus nominal GDP. d. depreciation of the economy's capital stock.
Moral hazard:
A. is about the unobserved actions of people. B. is about the unobserved characteristics of people. C. occurs before the parties have entered into an agreement. D. None of these statements is true.