Suppose one person buys a copy of Consumer Reports and gives away free copies to all who request one. This is an example of
A) free rider problem.
B) moral hazard.
C) adverse selection.
D) economies of scale.
A
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Which of the following would be least likely to affect the supply of automobiles?
a. higher prices for steel and other resources used in producing automobiles b. a successful physical fitness plan encouraging Americans to walk rather than drive to their destinations c. a technological improvement reducing the production costs of automobiles d. increased wages for members of the United Auto Workers union
Consuming goods until the ratio of marginal utilities of the goods is equal to the ratio of their prices is consistent with maximizing total utility
a. True b. False
Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).According to this Application, if you earn a salary of $40,000 in the first year and all prices triple in the next year. How will this affect the time it takes to pay off your school loans, assuming that you put all your earnings into paying it off? Assume that your debt is $40,000.
A. It will cut the payoff time to 1/3 of the original time. B. It will cut the payoff time to 1/2 of the original time. C. It will cut the payoff time to 2/3 of the original time. D. It will triple your payoff time.
The main public policies targeted at achieving growth in high-income countries are _________ policies focused on investment, including investments in human capital, technology, and physical plant and equipment.
a. immigration b. taxation c. command d. fiscal