Why do street performers face a free-rider problem? How do they try to reduce this problem?
Please provide the best answer for the statement.
Street performers provide public entertainment. With private entertainment, people can be charged admission and thus pay for the entertainment. When street performers entertain, they must rely on the voluntary payments of the viewers. Not all viewers pay for this entertainment and thus these people are considered free riders by the street performers. These people who do not pay get the benefit of the performance without paying the cost. They try to reduce this problem by involving the crowd in the entertainment so they feel more obligated to pay. Sometimes their activity is based on the size of the donation.
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In some markets consumers may buy many different brands of a product. Which of the statements below best represents a situation where demand for a particular brand would be very elastic?
A. "The brand I buy is so superior to other available brands that I hardly consider the others." B. "I use so little of that product that when I do buy it, I don't pay much attention to the price." C. "The different brands are almost identical. I always buy the cheapest." D. "I pinch pennies in buying other products, but like most people I feel I owe it to myself to get the best brand of this product."
Mikey is very picky and insists that his mom make his breakfast with equal parts of cereal and apple juice — any other combination and it ends up on the floor. Cereal costs 4 cents per tablespoon and apple juice costs 6 cents per tablespoon
If Mikey's mom budgets $8 per month for Mikey's breakfast, how much cereal and juice does she buy? A) 40 tablespoons each of cereal and juice B) 80 tablespoons each of cereal and juice C) 40 tablespoons of cereal and 75 tablespoons of juice D) 100 tablespoons of cereal and 67 tablespoons of juice
The administrative burden of any tax system is part of the inefficiency it creates
a. True b. False Indicate whether the statement is true or false
Consider the following equation for household consumption expenditure:
Consmptn= 
0+ 1Inc + 2Consmptn-1+ u
where ‘Consmptn' measures the monthly consumption expenditure of a household, ‘Inc' measures household income and ‘Consmptn-1' is the consumption expenditure in the previous month. Consmptn-1 is a _____ variable.
A. exogenous
B. binary variable
C. lagged dependent
D. proxy variable