The free-rider problem implies that:
A. each person will pay the full cost of the public good.
B. nobody wants the public good.
C. everybody will pay a portion of the cost of the public good.
D. each person will try to benefit from the public good without paying for it.
Answer: D
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Economists favor the use of peak-load pricing since it can
A. improve the equity of the distribution of income. B. enhance the efficiency in the use of scarce resources. C. improve the profit levels of corporations. D. result in lower levels of pollution.
The principal argument against comparable worth is that:
a. men and women differ largely in terms of their productivities. b. market does not function correctly and leads to inefficient allocation of resources. c. market allocates scarce resources to their most valued use in the most efficient manner. d. demand and supply do not allocate workers to where they are needed the most. e. legislation by the government are often appropriate as it processes all the available information correctly.
The assignment of inputs to specific industries by central planners is made difficult by
A. the interdependency among industries. B. lack of data for decision making. C. the danger of a chain reaction among industries if an error is made at any point. D. All of the responses are correct.
If the quantity of rental units increases by 10 percent when the monthly rental price doubles, the supply of rental units, other factors held constant, is:
A. elastic. B. inelastic. C. perfectly elastic. D. perfectly inelastic.