The free-rider problem is encountered when
A) someone benefits from the consumption of a public good without paying his or her full share.
B) all individuals who consume a public good pay for it.
C) all goods consumed and produced are private goods.
D) all individuals are willing to pay for what they consume.
Answer: A
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Based on the information in Scenario 1, real GDP grew by about ________ percent from 2015 to 2016
A) 23 B) 31 C) 62 D) 162
Real wages will rise if
A) money supply growth is less than expectations. B) real interest rates fall. C) aggregate demand is less than aggregate supply. D) money supply growth exceeds the inflation rate.
Which of the following would NOT be considered a macroeconomic topic?
A) the reasons for a decline in the price of crude oil B) the cause of a downturn in the economy C) the effect of the government budget deficit on inflation D) the causes of inflation and unemployment
Suppose Erie Textiles can dispose of its waste "for free" by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces fish and bird reproduction. This causes damage to local fishermen and bird watchers. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen and bird watchers will not suffer any damage. The relevant gains and losses (in thousands of dollars) for the three parties are listed below. WithFilterWithoutFilterGains to Erie$200$400Fisherman$180$50Bird Watchers$130$25When Erie Textiles operates with a filter, the total gain (in thousands of dollars) by all three parties is ________.
A. $600 B. $475 C. $510 D. $985