What is the free-rider problem?
What will be an ideal response?
The free-rider problem exists when people can enjoy the benefits of public goods whether they pay for them or not. Usually they are unwilling to pay for them.
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According to the quantity theory of money demand
A) an increase in interest rates will cause the demand for money to fall. B) a decrease in interest rates will cause the demand for money to increase. C) interest rates have no effect on the demand for money. D) an increase in money will cause the demand for money to fall.
Ryan lives in an apartment where he pays $7,000 a year in rent. Sarah lives in a house that could be rented for $21,000 a year. How much do these housing services contribute to GDP?
a. $21,000 b. $28,000 c. $7,000 d. $14,000
The end of a recession is called the:
A. peak. B. boom. C. expansion. D. trough.
Suppose the price of a natural resource like oil falls. What will be the effect on SRAS curve?
A. Movement to the left along the AS curve B. AS curve will shift to the left C. Movement to the right along the AS curve D. AS curve will shift to the right