Because of the free-rider problem,
a. private markets tend to undersupply public goods.
b. the federal government spends too many resources on national defense and not enough resources on medical research.
c. fireworks displays have become increasingly dangerous.
d. poverty has increased.
a
You might also like to view...
There exists a substantial underground market in food stamps
a. True b. False
The concept of diminishing marginal utility is the idea that;
(a) Total satisfaction will decrease as more units of a good are consumed; (b) The satisfaction gained from each additional unit of a good will decrease; (c) Total utility will become negative; (d) Both (a) and (c) describe it.
Private saving is equal to:
A. income ? consumption. B. income - consumption ? taxes. C. income ? consumption ? government spending. D. income ? consumption ? government spending ? taxes.
The following table shows Alex's estimated annual benefits of holding different amounts of money. Average money holdingsTotal benefit$700$50$800$59$900$66$1,000$71$1,100$74How much money will Alex hold if the nominal interest rate is 8 percent? (Assume she wants her money holdings to be in multiples of $100.)
A. $900 B. $800 C. $700 D. $1,000