The free-rider problem
a. forces the supply of a public good to exceed its demand.
b. results in common resources becoming club goods.
c. explains why many local governments supply public goods.
d. results in public goods becoming private goods.
c
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Refer to the above figure. Autonomous consumption is
A) only at point A. B) to the left of point B. C) only at point B. D) to the right of point B.
In 2011, Standard & Poor's (S&P) changed its rating on U.S. Treasury bonds from ________ based on the state of the federal government's budget deficit
A) "A" to "D" B) "AAA" to "AA+" C) "A+" to "B+" D) "A" to "AAA"
A creative response to regulations can be described as
A) conforming to the letter of the law but undermining its spirit. B) totally conforming to the law. C) completely ignoring the law. D) none of the above.
A tax on sellers has what effect on a market?
A. Supply shifts vertically upward by the amount of the tax. B. Demand shifts vertically downward by the amount of the tax. C. Equilibrium price decreases and equilibrium quantity decreases. D. Equilibrium price decreases and equilibrium quantity increases.