A(n) _____ arises when people purchasing a public good have an incentive to let others pay for it and then take advantage of those purchases made by others
a. free rider problem
b. monopsony
c. monopoly
d. adverse selection
a
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The main policy goal for a country according to the mercantilists is
A) to create a one-time deficit in the balance of payments. B) to create a continuing deficit in the balance of payments. C) to create a one-time surplus in the balance of payments. D) to create a continuing surplus in the balance of payments. E) to create specie overflows.
A World View article, "Glaring Inequalities," says that income inequality tends to diminish as a nation develops. The distribution of income answers the ________ question.
A. WHY B. WHERE C. HOW MUCH D. FOR WHOM
Holding other factors constant, if new environmental regulations increase firms' cost of operating capital, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. increase; decrease B. decrease; increase C. increase; increase D. decrease; decrease
Assume an economy is in equilibrium at an output level of $600 billion. If government purchases decrease by $75 billion, then at the output level of $600 billion, there is
A. either an unplanned increase or decrease in inventories depending on the value of the MPC. B. an unplanned increase in inventories. C. an unplanned decrease in inventories. D. an unplanned inventory change of zero.