One reason markets may fail to provide the optimal quantity of public goods is the problem of
A) determining what the public wants.
B) nontariff barriers.
C) nondiscrimination.
D) free riders.
E) economic integration.
D
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If electric utilities continually reduce their emissions of sulfur dioxide
A) the utilities will eventually be forced to go out of business. B) the marginal cost of further emissions will rise. C) the marginal benefit of additional emissions will rise. D) the total benefit of sulfur dioxide emissions will fall.
Refer to Figure 8.6. Curve 1 is Outdoor Equipment's A) marginal cost curve. B) average variable cost curve. C) average total cost curve. D) average fixed cost curve.
If A represents product markets, and D represents firms, then the flow from A to D is _____
a. revenue. b. expenditures. c. labor, capital, and natural resources. d. goods and services. e. wages, interest, rent, and profit. check image at top
Which of the following provides the best explanation of why low-income countries generally remain poor?
A. Their political environment and policies often discourage productive activity and reduce the potential gains from specialization and exchange. B. They are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates. C. They are poorly endowed with natural resources, which are essential for long-term rapid growth. D. When the average income level is low, workers have little incentive to earn higher incomes.