The answer is, "Because of the free rider problem." The question is:
A) Why can't the government produce nonexcludable public goods?
B) Why can't the market produce nonexcludable public goods?
C) Why do negative externalities exist?
D) Why do positive externalities exist?
E) b and d
B
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Elite Astin-Martin Cars offers its customers a fancy showroom and a knowledgeable sales force. If Astin-Martins Are Us opens an outlet nearby, offering cut rate prices and little service, then Elite Astin-Martin Cars will likely find
a. more customers attracted to buying Astin-Martins and its sales will increase. b. more customers visiting its showroom, but lower sales. c. fewer customers visiting its showroom and lower sales. d. fewer customers visiting its showroom but more of them making a purchase.
With ________, firms value assets on their balance sheet at what they would sell for in the market
A) mark-to-market accounting B) book-value accounting C) historical-cost accounting D) off-balance sheet accounting
The four principal factors that Adam Smith identified as contributing to economic growth are
a. size of the labor force, degree of labor specialization, size of the capital stock, and level of technology b. size of the labor force, degree of labor specialization, size of the capital stock, and natural resource base c. size of the labor force, degree of labor specialization, size of the capital stock and the age of the labor force d. quality of the labor force, degree of labor specialization, size of the capital stock, and level of technology e. size of the labor force, quality of the labor force, degree of labor specialization, and natural resource base
A World View titled "Export Ratios" examines the openness of trade for several countries based on the trade to GDP ratio. Of the countries listed below, which exports the least (as measured as a percentage of GDP)?
A. United States. B. Canada. C. United Arab Emirates. D. Belgium.