A public good such as a streetlight will not be provided by a private profit-seeking company because
a. the streetlight is also a merit good
b. the streetlight is an exclusive and rival good
c. it takes a government to maintain the streetlights, e.g., changing bulbs
d. private companies can't compete with government in producing streetlights
e. the benefit a person derives from having streetlights are less than the cost of installing streetlights
E
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Which of the following models do not believe that there exists a short run tradeoff between higher inflation and lower unemployment?
a. Keynesians b. monetarists c. new classical d. real business cycle e. none of the above
Figure 9.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. Initially buyers believe that 50% of used bikes in the market are lemons (low quality). Compared to the outcome with neutral expectations, how many fewer bikes are sold in equilibrium?
A. 8 B. 12 C. 18 D. 22
For a given expected value, the smaller the standard deviation of the expected value, the larger the risk
Indicate whether the statement is true or false
Officially, the payroll tax is referred to as
a. the trust fund tax. b. Social Security tax. c. contributions for social insurance. d. investment in Social Security.