A free rider problem is created by private goods
Indicate whether the statement is true or false
FALSE
You might also like to view...
Efficiency wages can be used to
A. prevent self-selection of employees. B. reduce influencing activities. C. compare the relative performance of employees. D. retain firm-specific human capital.
If the nominal interest rate is 4 percent and the real interest rate is -2.5 percent, then the inflation rate is
a. -6.5 percent. b. -1.5 percent. c. 1.5 percent. d. 6.5 percent.
When both inflation and unemployment are concerns, supply-side economists argue in favor of policies to shift the
A. aggregate supply curve to the right and lower the CPI, while Keynesian fiscal policy would shift the aggregate demand curve to the right and increase the CPI. B. aggregate supply curve to the left and raise the CPI, while Keynesian fiscal policy would shift the aggregate demand curve to the left and decrease the CPI. C. aggregate supply curve to the right and lower the CPI, which is the same policy Keynesian economists would advocate. D. aggregate demand curve to the right because unemployment is a more important concern than inflation.
Figure 6.1 shows the cost structure of a firm in a perfectly competitive market. If the firm's fixed cost increases by 3,000 due to a new government regulation:
A. the marginal cost curve shifts upward. B. the average variable cost curve shifts upward. C. the average total cost curve shifts upward. D. None of these