One reason we need government, even in a market economy, is that
a. there is insufficient market power in the absence of government.
b. property rights are too strong in the absence of government.
c. the invisible hand is not perfect.
d. Both a and b are correct.
c
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The free-rider problem exists because it is difficult to ______.
a. share the benefits of some products with everyone b. prevent everyone from gaining the benefits of some products c. produce products that satisfy everyone d. produce products that satisfy anyone
In the market for birth control devices, if the number of women of child-bearing age decreases, the
A. supply curve will shift to the right. B. demand curve will shift to the left. C. supply curve will shift to the left. D. demand curve will shift to the right.
Because of the positive externality of vaccinations, economic efficiency would be improved
A) if fewer people were vaccinated. B) if more people were vaccinated. C) only if all people were vaccinated. D) only if no people were vaccinated.
If taxes were a lump-sum amount, then the magnitude of the government spending multiplier ________ it would be if taxes depend on income.
A. is equal to what B. is larger than C. is smaller than D. could be either larger than or smaller than