The free-rider problem is
A) the use of private goods in one state by residents of another state.
B) the incentive that people have to avoid paying for a public good.
C) the incentive that people have once they are receiving welfare to keep getting welfare.
D) that people cannot be forced to accept public goods.
B
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With rational expectations, a policy that would decrease AD would lead to:
a. lower inflation and lower unemployment in the short run if people underestimated the effect of the policy on inflation. b. lower inflation and higher unemployment in the short run if people underestimated the effect of the policy on inflation. c. lower inflation and an indeterminate effect on unemployment in the short run, if people's expectations were correct. d. both (b) and (c).
When new farmers enter the wheat industry, the equilibrium price of wheat
a. always falls. b. falls only if existing firms gang up on the entrant. c. falls only if existing firms are earning no economic profit. d. falls only if the new firm is more efficient than existing firms.
Which of the following is true of technology?
a. Technological improvements are less important today than was true in the past. b. Lack of access to modern technology is a major barrier restraining the growth of low-income countries. c. Often, perverse institutions and policies in low-income countries undermine the potential gains from adoption of modern technology. d. Countries with high investment rates will be unable to apply modern technology effectively.
Refer to the graph below, where Sd and Dd are the domestic supply and demand curves for a product. The world price of the product is $6. If the economy is open to international trade but a per unit tariff of $4 is imposed, then the total revenue going to domestic producers would be:
A. $400, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $80 B. $240, the total revenue (after tariff) going to foreign producers would be $240, and the tariff revenue going to the government would be $80 C. $400, the total revenue (after tariff) going to foreign producers would be $240, and the tariff revenue going to the government would be $80 D. $240, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $120