In a competitive market without intervention, pure public goods would be
A. produced but at inefficiently high quantities.
B. produced but at inefficiently low quantities.
C. freely available.
D. not produced.
Answer: D
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If d is the depreciation rate and K is the capital stock, the amount of investment required to keep the economy in a steady state is given by:
A) I = d - K. B) I = d + K. C) I = d × K. D) I = d/K.
The figure above shows the market for annual influenza immunizations the United States. Area A + Area B is the
A) deadweight loss when there is not the illustrated subsidy. B) loss in efficiency from the illustrated subsidy. C) gain in efficiency from the illustrated subsidy. D) remaining deadweight loss when there is the illustrated subsidy. E) equilibrium with the illustrated subsidy.
Behavioral economists have discovered that
A) transitivity of preferences always holds, even in animals. B) the law of demand does not hold in controlled experiments. C) transitivity of preferences does not always hold, especially for young people. D) reflexivity of preferences is not true.
The adverse selection problem in health care occurs because people who are healthier are less likely to buy health insurance because they are less likely to need it.
Answer the following statement true (T) or false (F)