It's difficult for a private firm to provide a public good because of free riders
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Resource Supply/Demand. The rent earned by the owner of the resource is measured by
The following questions refer to the accompanying graph, which shows the supply and demand for a resource. The owner of the resource is receiving the price P0 and is providing the quantity Q0.
a. area A + B + C.
b. area B + C + D.
c. area B + C.
d. area C + D.
The economic system that answers the What, How and For Whom questions by central authority is a:
a. market economy. b. command economy c. traditional economy. d. any of these
Two goods are perfect complements if the marginal rate of substitution between them is constant
a. True b. False Indicate whether the statement is true or false
Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.1Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)S0NA10 T1 9 U2 7 V3 4NAOn the basis of Table 1.1, you may infer that the law of increasing opportunity costs applies to increasing production of
A. Stealth bombers but not to B-1 bombers. B. B-1 bombers. C. Both B-1 bombers and Stealth Bombers. D. Neither B-1 bombers or Stealth Bombers.