A competitive market economy is unlikely to provide an efficient quantity of some public goods because:
a. only the government has the vast resources necessary to produce public goods.
b. the nature of public goods makes it difficult for producers to withhold them from nonpaying consumers.
c. the technology involved in the production of public goods makes it difficult for private firms to produce them even though, once produced, they could be marketed efficiently.
d. private production of public goods generally results in a large amount of profit, which is difficult for a firm to effectively pay out to shareholders.
b
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In the ultimatum game:
A. is a multi-stage game where one player (the proposal) offers to give the second player (the recipient) some share of a fixed prize; the recipient then decides whether to accept or reject the proposal. B. is a single-stage game where one player (the proposal) offers to give the second player (the recipient) some share of a fixed prize; the recipient then decides whether to accept or reject the proposal. C. is a multi-stage game where one player (the proposal) divides a fixed prize between himself and another player (the recipient) who is an passive participant. D. is a single-stage game where one player (the proposal) divides a fixed prize between himself and another player (the recipient) who is an passive participant.
According to long-run growth models, which of the following is least likely to increase potential output?
A. Higher levels of saving and capital accumulation B. More rapid development of growth-compatible institutions C. Increased levels of entrepreneurship D. Increased aggregate demand
Because contractionary fiscal policy raises domestic interest rates, it can be used to fix the value of the domestic currency above the market equilibrium rate.
Answer the following statement true (T) or false (F)
A consumer is at an optimum when the price of one good she has been consuming decreases. As a result
A) the value of the marginal utility of the last unit consumed has increased. B) the value of the marginal utility of the last unit consumed has decreased. C) the price of the other good must decrease too. D) the marginal utility of the last dollar spent on this good is now greater than the marginal utility of the last dollar spent on other goods.