The consequence for society of the free-rider problem is:
A. valuable goods and services are oversupplied.
B. valuable goods and services are undersupplied.
C. goods and services not valued by the society will be oversupplied.
D. valuable goods and services are underdemanded.
B. valuable goods and services are undersupplied.
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Automatic stabilizers are changes in ________ that occur automatically as economic activity changes
A) taxes and transfer payments B) the money supply C) unemployment D) inflation
Taxes in the United States as a percentage of GDP are among the highest in the world
a. True b. False Indicate whether the statement is true or false
Which of the following measures the growth rate of an economy?
A. Real GDP divided by nominal GDP. B. GDP per worker. C. Investment as a percentage of GDP. D. The percentage change in real GDP from one period to another.
If the price of a company's stock truly reflects the value of a share in the company, then
A. abrupt stock price changes reflect abrupt changes in the public's perception of fundamentals and risk. B. stock prices can only change abruptly when accounting scandals are uncovered, as in 2002. C. it is impossible for the stock price to change by 20% in a single day, as in 1987. D. it is impossible for the stock price to increase by 84% within a single year, as in 1999.