In the absence of government
A. the free-rider problem is more likely to occur.
B. public goods are likely to be overprovided.
C. market failure is less likely to occur.
D. public goods are likely to be underprovided.
Answer: D
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Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670The price elasticity of demand (based on the midpoint formula) when price increases from $8 to $10 is
A. -.63. B. -2.25. C. -1.60. D. -1.16.
A positive externality is internalized when
A. demand shifts to the right until the socially optimum level of output is obtained. B. demand shifts to the left until the socially optimum level of production is obtained. C. supply shifts to the left until the socially optimum level of production is obtained. D. b and c E. none of the above
Interest rates in the economy have risen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall. B) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall. C) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise. D) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise.
___ contains the information or meaning the source hopes to convey
Fill in the blank(s) with the appropriate word(s).