In the case of a nonexcludable public good, the market will fail to produce the good because of the free rider problem.
Answer the following statement true (T) or false (F)
True
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In Figure 3-4, for which of the following would this statement be true: “To get more apples we have to give up wheat.” A movement from
A. A to E. B. C to D. C. D to C. D. D to E. E. B to C.
If the above figure illustrated a perfectly competitive industry, the equilibrium market price would be equal to
A) $4. B) $7. C) $9. D) $11.
A small economy increased its capital per hour worked (K/L) from $40,000 to $50,000. As a result, real GDP per worker (Y/L) grew from $20,000 to $25,000
If the economy increases its capital per hour worked by another $10,000 to $60,000, but there is no change in technology, by how much more and in what direction will output per worker change? A) Output per worker will increase by less than $5,000. B) Output per worker will increase by exactly $5,000. C) Output per worker will fall by more than $5,000. D) Output per worker will increase by more than $5,000.
The L in OLI theory stands for loyalty, and this factor makes it more difficult for firms to substitute foreign operations for domestic as they fear a loss of sales due to negative publicity
Indicate whether the statement is true or false