The free rider problem is triggered when a good is ________, and the tragedy of the commons arises when a good is ________
A. both rivalrous and nonexcludable; rivalrous.
B. nonexcludable; both rivalrous and nonexcludable.
C. rivalrous; both rivalrous and nonexcludable.
D. both rivalrous and nonexcludable; excludable.
Answer: B
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Expenses for room and board
a. are opportunity costs of attending college, because they are subsidized by the government or by the college b. are opportunity costs of attending college since they involve cash expenditures c. are opportunity costs of attending college if you are on scholarship, but not otherwise d. are not usually part of the opportunity cost of attending college, because you would have to live somewhere and eat something even if you didn't attend college e. are not usually part of the opportunity cost of attending college, because they are already included in room and board charges, and we wish to avoid double counting
If the French government increases its expenditures and reduces taxes, then France's interest rate
a. and its exchange rate rise. b. rises and its exchange rate falls. c. falls and its exchange rate rises. d. and its exchange rate fall.
If an incumbent faces an identical potential entrant with no costs of entry, the incumbent will
A) produce the Cournot duopolist level of output B) produce the Stackelberg leader level of output C) set price equal to marginal cost D) shut down
The federal funds rate is the interest rate on short-term loans made by:
A. the Federal Reserve to the federal government. B. the Federal Reserve to commercial banks. C. commercial banks to other commercial banks. D. the federal government to commercial banks.