When it comes to public goods, it is important to remember
A. all goods provided by the government are public goods.
B. the free rider problem is difficult to overcome, but the drop-in-the-bucket problem is not.
C. that government intervention necessarily solves the market failure.
D. only one level of output can be realized, and consumers are willing to pay different amounts for that level.
Answer: D
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Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD2. In the short run
A) the unemployment rate will be larger than the rate before the contractionary monetary policy. B) the unemployment rate will be smaller than the rate before the expansionary monetary policy. C) the unemployment rate will be the same rate as before the expansionary monetary policy. D) the unemployment rate can increase or decrease depending upon how much the LRAS will shift.
Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $17.50 what is the firm's profit-maximizing output?
A) 2 tattoos per hour B) 3 tattoos per hour C) 4 tattoos per hour D) 5 tattoos per hour
Double taxation is a problem for corporations.
Answer the following statement true (T) or false (F)
To some economists, the "Great moderation" means:
a. a small change in real wages. b. a low inflation rate. c. a low unemployment rate. d. low output growth variability. e. low money supply growth.