Why is the social marginal benefit of a common property smaller than the value that people, on average, receive from it?
a. Because use of a common property is nonrivalrous.
b. Because when one additional person uses the common property, it lowers the value that others receive from it.
c. Because entrance fees must be taken into account when determining the social benefit derived from a common property.
d. Because "free riders" will use the common property without contributing to its costs.
b. Because when one additional person uses the common property, it lowers the value that others receive from it.
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A market supply curve reflects the
A) marginal private costs of producing a good or service. B) marginal social costs of producing a good or service. C) external costs of producing a good or service. D) external benefits of producing a good or service.
Investors should be willing to pay more for a stock when (controlling for all other things):
a. Future interest rates are expected to increase. b. Future interest rates are expected to decrease. c. Future dividends are expected to decrease.
Strategies and incentives:
A. work the same whether games are played once or repeated. B. often work quite differently when games are repeated. C. do not change when the game is repeated. D. None of these statements is true.
Utilitarians believe that the proper goal of the government is to maximize the sum of the utilities of everyone in society
a. True b. False Indicate whether the statement is true or false