Free riding is not a problem in the market for a private good because
A) people who do not pay for the good can be excluded from consumption.
B) the good is a rival good.
C) the market eliminates the problem of externalities.
D) The question errs because free riding is a problem in providing private goods.
A
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The definition of M2 includes
I. M1. II. money market mutual funds. III. currency held outside of banks. A) I and II only B) I and III only C) II and III only D) I, II, and III
If the money wage rate rises, then the
A) SAS curve shifts rightward. B) SAS curve shifts leftward. C) LAS curve shifts rightward. D) LAS curve shifts leftward.
The concept of holding reserves, such as gold, that are less than the value of the total deposits
A. is known as non-credit banking. B. is known as fractional reserve banking. C. has been illegal since the passage of the Financial Services Modernization Act of 1999. D. None of the above are correct
By 1975, government expenditures were about ______ of GDP.
a. one-fourth b. one-third c. one-half d. two-thirds