Which of the following is true?
a. Consumption of a public good by one individual reduces the availability of the good for others.
b. It is extremely difficult to limit the benefits of a public good to the people who pay for it
c. Public goods are free whenever the government produces them.
d. From an efficiency standpoint, a market economy will generally supply too much of a public good.
b
You might also like to view...
During recessions, the value of collateral decreases and corporate profits decrease, so firms do not have cash to finance new investment projects. Therefore, credit rationing depends on the state of the economy. This situation is known as the
A) risk acceptance cost. B) lender's dilemma. C) default premium. D) financial accelerator.
The social insurance system generally redistributes income from
a. rich to poor and from old to young b. rich to poor and from young to old c. poor to rich and from old to young d. poor to rich and from young to old e. consumers to producers
The relationship between the wage rate and the quantity of labor that workers wish to supply in total is called: a. the market supply curve for labor
b. the market demand curve for labor. c. an individual demand curve for labor. d. an individual supply curve for labor.
Because of the multiplier effect, a $10 million increase in government expenditure will cause the economy's equilibrium level of real GDP to increase by less than $10 million
a. True b. False Indicate whether the statement is true or false