When the free rider problem is present in a market the good:
A. is not excludable.
B. is rival in consumption.
C. will be underconsumed.
D. will be oversupplied.
Answer: A
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All of the following are income in kind EXCEPT
A) government provided housing. B) government provided education. C) tips received by a waitress. D) goods produced in the home.
A common unscrupulous financial practice of railroad promoters (and the basis of the Credit Mobilier scandal) involved
a. federal tax evasion. b. "insider" ownership of railroad construction companies. c. sales of worthless railroad bonds to unwitting buyers. d. insurance fraud.
According to the purchasing power parity theory, in the long run
a. the exchange rate between any two currencies should be equal all over the world b. the value of the dollar should equal the value of the pound which should equal the value of the yen c. inflation rates should equalize around the world d. interest rates should equalize around the world e. the exchange rate between the Canadian dollar and the British pound should reflect differences in price levels between Canada and Britain
Which philosopher believes that advocates of a position on income distribution must look at a society in the making, where no one yet knows what rules govern economic activity and income distribution?
a. Karl Marx b. A. P. Lerner c. Max Lorenz d. Corrado Gini e. John Rawls