Which of the following is a consequence of free riders?
A. The government always steps in to produce the good or service.
B. The good or service is produced regardless.
C. The good or service is never produced because not enough people paid to use it.
D. Consumers are better off by not having the good or service be produced.
Answer: C
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
The period of time between when monetary policy is enacted and when it actually begins to affect the economy is called the
A) recognition lag. B) implementation lag. C) impact lag. D) liquidity lag.
Comment on the following statement: "Taxes on externality-producing activities are generally used to eliminate externalities."
What will be an ideal response?
In an effort to serve consumers who have become more health conscious, a number of firms have begun developing small electronic devices which allow people to monitor various health conditions
These firms are reacting to which of the three key economic ideas? A) Optimal decisions are made at the margin. B) Firms attempt to maximize revenues. C) People respond to economic incentives. D) People are rational.