Which of the following makes it difficult for markets to produce public goods?
a. Free riders use the goods without paying for them.
b. The government intervenes as a free rider.
c. Intellectual property is easily stolen by foreign firms.
d. Social pressures require firms to lower prices on the goods.
a. Free riders use the goods without paying for them.
It is difficult for markets to produce public goods because free riders use the goods without paying for them.
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How is national output related to national income?
A) Income is greater than output during recoveries and booms. B) Income is greater than output during recessions and depressions. C) Output exceeds income by the amount of unsold goods. D) They are always equal. E) They are only equal when the economy is in equilibrium.
Both foreign direct investment and foreign portfolio investment by U.S. residents increase U.S. net capital outflow
a. True b. False Indicate whether the statement is true or false
Suppose that the country of Xenophobia chose to isolate itself from the rest of the world. Its ruler proclaimed that Xenophobia should become self-sufficient, so it would not engage in foreign trade. From an economic perspective, this idea would
a. make sense if Xenophobia had an absolute advantage in all goods. b. make sense if Xenophobia had no absolute advantages in any good. c. not make sense as long as Xenophobia had a comparative advantage in some good. d. not make sense as long as Xenophobia had an absolute advantage in at least half the goods that could be traded.
A supply curve is defined as the relationship between:
A. the price of a good and the quantity that consumers are willing to buy. B. the price of a good and the quantity that producers are willing to sell. C. the income of consumers and the quantity of a product that consumers are willing to buy. D. the income of consumers and the quantity of a product that producers are willing to sell.