The free-rider problem with a public good leads to
A) inefficiency if the good is provided by only private markets with no government action.
B) overproduction if the good is provided by private markets.
C) underproduction if the good is provided by the government.
D) None of the above answers is correct.
A
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Deflating refers to
a. discounting a future value into its present value by accounting for the opportunity cost of money b. converting a real value into its associated nominal value c. using the discount rate to correct for environmental benefits or costs accruing in some future time period d. none of the above
When the slope of a country's production set declines, it implies:
a. the production set has shrunk. b. the marginal cost of producing the good measured on the Y-axis has fallen. c. the marginal cost of producing the good measured on the Y-axis has increased. d. the marginal cost of producing the good measured on the X-axis has fallen.
Serious natural disasters like hurricanes and tornadoes cause widespread and extensive damage to buildings. As a result of a natural disaster, what would you expect to happen in the market for building supplies?
Which of the following does not represent real GDP?
A) GDP in current dollars B) GDP in terms of goods C) GDP in base year dollars D) GDP in constant dollars