When what people pay does not necessarily reflect the real value they put on a good, it is likely that the:
A. free rider problem exists.
B. good will be oversupplied.
C. good is easily excludable.
D. good is nonrivalrous.
A. free rider problem exists.
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During business cycle expansions when income and wealth are rising, the demand for bonds ________ and the demand curve shifts to the ________, everything else held constant
A) falls; right B) falls; left C) rises; right D) rises; left
Antitrust laws in the United States
A) are an attempt to foster competition. B) are not necessary in the twenty-first century. C) have not been used in the past twenty-five years. D) are the same as the laws in the European Union.
When the government uses tax revenue to pay off portions of the national debt, total purchasing power in the economy
a. increases. b. decreases. c. is not affected at any level. d. remains the same but changes individually.
Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What are Winston's accounting profits?
A. $150,000 B. $138,000 C. $142,000 D. $78,000