If the free market is called upon to provide public goods, then:
A. there will more goods provided than is optimal.
B. there will be fewer goods provided than is optimal.
C. the market will provide the optimal number of goods.
D. the market price will be correct, but the optimal amount of output will not be produced.
Answer: B
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If an economy is fully utilizing its resources, it can produce more of one product only if it:
A. doubles manufacturing of the product. B. produces less of another product. C. adds more people to the labor force. D. reduces the prices of the most expensive products.
Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the competitive price
(This is also called an optimal two-part tariff.) What is the per-unit price it should charge, if any? A) It should not charge a price per unit; just a flat fee to consume as much of the product as desired. B) It should charge a range of prices from $40 to $12. C) $12 D) $16
In Figure 21.1, diminishing marginal returns first occur with the
A. Fourth worker. B. Second worker. C. Fifth worker. D. Third worker.
The three basic legal forms of business enterprise in the United States are
A. vertical, horizontal, and conglomerate corporations. B. monopolies, enterprises, and competitors. C. national, global, and multinational corporations. D. proprietorships, partnerships, and corporations.