The free-rider problem arises if goods are
A. nonrivalrous in consumption.
B. rivalrous in consumption.
C. nonexcludable.
D. excludable.
E. a and d
Answer: C
You might also like to view...
Use the following table to answer the next question. The base year is 2007. YearHot DogsBaseballsBottles of Beer?PriceQuantityPriceQuantityPriceQuantity2005$2.50100$2.5050$1.0010020064.001005.001002.0015020075.001005.001002.0020020088.001508.002004.00200200910.0020010.002004.00250Calculate the percentage change in prices from 2007 to 2009.
A. 175% B. 200% C. 150% D. 100%
Assume the production of a good gives rise to external benefits. The government may increase efficiency by
A) subsidizing consumption of the good. B) requiring all producers of the good to be licensed. C) taxing production of the good. D) imposing taxes on the good.
One area of labor issues that the labor side agreement to NAFTA does not open to foreign consultation or investigation is
A) the use of child labor. B) worker exposure to unsafe conditions. C) minimum wages. D) workers' rights to organize.
In a command economy, ________ establish(es) what will be produced and when, set(s) production goals, and make(s) rules for distribution.
A. only privately owned firms B. a centralized authority C. individuals and households D. individuals, households and privately owned firms