Which of the following statements is true about public goods?
a. They are always produced by the government.
b. The market-determined output is efficient.
c. The government can hire a private entity to produce a public good.
d. Nonexcludability is sufficient condition for a good to classified as a public good.
C
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All of the following are barriers to entry in an industry EXCEPT
A) a patent. B) governmental restrictions. C) low marginal tax rates. D) economies of scale.
What occurs when it is impossible to improve the situation of one party without imposing a cost on another?
a. efficiency b. consumer surplus c. social surplus d. deadweight loss
An example of a shortage is limited amounts of
What will be an ideal response?
The many layers of the federal government in the United States:
A. lead to economic inefficiencies because of difficulty aggregating and conveying information. B. enhance government's ability make effective decisions quickly. C. better allow the invisible hand to direct government resources to their best uses. D. improve accountability of government officials, thus leading to more efficient policies.