A free-rider problem exists when a good that has the following characteristic?
a. Rivalry in consumption.
b. Elastic demand.
c. Inelastic demand.
d. Nonexcludable.
D
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In the economic way of thinking, money
A) allows people to behave completely morally. B) allows people to behave completely competitively. C) allows people to make goods exchanges without concern for the true costs of their actions. D) allows people to make a wide range of negotiations.
Norah works as a content writer for an online magazine. Because her work is not evaluated daily, she often spends her time playing online games, which adversely affects the quality of her work
a) What is the term used to refer to such behavior? b) What is the solution to this problem? Explain your answer.
Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve raises the required reserve ratio to 12 percent, then the bank will now have excess reserves of
A) $12,000. B) $0. C) -$2,000. D) -$12,000.
If the price level is constant in the short run,
A) the short-run aggregate demand curve is horizontal. B) the short-run aggregate demand curve is vertical. C) the short-run aggregate supply curve is horizontal. D) the short-run aggregate supply curve is vertical.