A common solution to the free-rider problem is for
a. government to subsidize consumption of the good.
b. government to provide the good and then pay for its production through taxation.
c. government to provide vouchers to consumers of the good.
Answer: b. government to provide the good and then pay for its production through taxation.
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Paulette owns a pizza parlor. Her total cost schedule is in the above table. Her total variable cost of producing four pizzas per hour is
A) $20. B) $49. C) $51. D) $71. E) Some amount, but more information is needed to determine this total variable cost.
In the short run in the Keynesian model, a sharp increase in oil prices would leave the economy with a ________ level of output and a ________ real interest rate
A) higher; lower B) lower; higher C) lower; lower D) higher; higher
Goods that are rival in consumption include both
a. club goods and public goods. b. public goods and common resources. c. common resources and private goods. d. private goods and club goods.
Consider the following game. You roll a six-sided die and each time you roll a 6, you get $30. For all other outcomes you pay $6. What is the expected value of the game?
A. -$6 B. $0 C. $6 D. $30