Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely
a. be provided by a private firm rather than the government.
b. have a free-rider problem.
c. not exist.
d. be limited to a small number of units of production.
b
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Which of the following represents in-kind income?
a. food stamps b. a public housing subsidy c. a school lunch program d. all of the above
The U.S. federal government spends its revenues in a number of ways. Rank the following spending categories from largest to smallest
a. income security, health, national defense, net interest b. health, national defense, net interest, income security c. net interest, health, income security, national defense d. national defense, income security, net interest, health
A profit maximizing firm will hire additional workers until
A. the extra cost associated with hiring the last worker equals the price of the good produced. B. the additional cost associated with hiring the last worker equals the average wage rate of the workers. C. the extra revenue generated by the last worker hired equals zero. D. the additional cost associated with hiring the last worker equals the additional revenue generated by that worker.
Refer to the data. If year 2 is chosen as the base year, in years 1 and 3 the price index values, respectively, are:
A. 4 and 6.
B. 6 and 4.
C. 120 and 100.
D. 100 and 150.