Which of the following is a free rider?
A. Butch breeds the feared pit bulls, and his neighbors now erect fences around their property.
B. Fred watches many public television programs, but he has never sent in a contribution.
C. Barry steals candy from the store where he works.
D. Betty regularly uses the local public library.
Answer: B
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A government-imposed restriction on the quantity of a good that can be imported is
A. a health restriction. B. a protective tariff. C. an embargo. D. a quota.
What happens to the market outcome if cartel members cheat on the collusive agreement?
A) Price declines, but firm-level quantities remain the same because the firms act like price takers B) Price and quantity revert to the single-seller monopoly equilibrium outcome C) Other firms raise prices so that the average market price remains unchanged D) Price declines and quantity increases toward the perfectly competitive equilibrium
Which of the following statements about economic models is TRUE?
A) A good economic model is complex. B) A good model does not rely on any assumptions. C) Every model is based on a set of assumptions. D) Economic models are designed to explain what people need.
Zachary spends his day studying for a total of four hours and exercising for one hour. Using the concept of utility to explain his choices, we can say
A. the total utility gained from exercising for one hour is greater than the total utility from studying for four hours. B. the marginal utility of exercising for the first hour was greater than the marginal utility of studying for the first hour. C. the marginal utility of studying for a fifth hour will be negative. D. the marginal utility from studying for a fifth hour is less than the marginal utility from the first hour of exercise.