Which of the following correctly describes the concept of free riding?
a. Making a public good available to all for no cost
b. Using a public good but leaving it to others to pay for it
c. Encouraging the use of city buses by not charging one day per week
d. Using a public good without preventing others from using it
b. Using a public good but leaving it to others to pay for it
Free riders are those who let others pay for a public good and then use the good themselves; if many people act as free riders, the public good may never be provided.
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If the slope of a curve is 1/5, we know that
A) the relationship is linear, and the line moves from lower left to upper right. B) the relationship is non-linear, and the line moves from lower left to upper right. C) the relationship is linear, and the line moves from upper left to lower right. D) the relationship is non-linear, and the line moves from upper left to lower right.
Which of the following is true if a market is in equilibrium?
a. price will be rising b. price will be falling c. quantity demanded is greater than quantity supplied d. quantity demanded is equal to quantity supplied e. quantity demanded is less than quantity supplied
Consumption is spending by: a. households on goods and services
b. households on capital goods and inventories. c. businesses on corporate social responsibility initiatives. d. government on subsidizing consumption goods.
"Smokers are more likely to be murdered than nonsmokers." This statement is an example of:
A) the fallacy of unintended consequences. B) a positive economic statement. C) a normative economic statement. D) a value judgment.