Which of the following products may have a free-rider problem?
A) On-the-job training programs
B) Environmental protection programs
C) Movie DVDs
D) Mobile phones
B
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Refer to Figure 5-9. Let's suppose the government imposes a tax of $50 per unit of toilet paper to bring about the efficient level of production. What happens to the market price of toilet paper?
A) It rises by more than $50 per unit. B) It rises by $50 per unit. C) It rises by less than $50 per unit. D) It remains the same because the tax is imposed on producers who create the externality.
When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of a particular good,
a. consumer surplus increases and total surplus increases in the market for that good. b. consumer surplus increases and total surplus decreases in the market for that good. c. consumer surplus decreases and total surplus increases in the market for that good. d. consumer surplus decreases and total surplus decreases in the market for that good.
Which of the following countries has had the highest growth rate of per capita GDP over the past 25 years?
What will be an ideal response?
The fact that many corporations use debt financing as well as equity financing creates all of the following except:
A. consistently lower debt-to-equity ratios. B. greater risk for the stockholders. C. the opportunity for a greater expected return for the stockholders. D. leverage for the stockholders.