An appeal to people's sense of civic or moral responsibility will ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. increase; smaller
B. increase; larger
C. reduce; smaller
D. reduce; larger
Answer: D
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The federal government has major assistance programs aimed at providing all of the following goods, except one. Which is the exception?
a. housing b. energy c. school lunches d. clothing e. food
British economist A. H. Phillips published his famous paper on the relationship between inflation and unemployment during ______.
a. the Great Depression b. World War II c. the 1950s d. the 2008 financial crisis
The demand curve for labor slopes down because
A. firms must lower prices to sell the additional units of its product that the extra workers produce. B. of the law of diminishing marginal product. C. firms value less efficient workers less than they value more efficient workers. D. of profit maximizing behavior.
Which of the following is a limitation of demand estimation through price experimentation?
A. This approach is comparatively more expensive than the other approaches of demand estimation. B. There is no uniform result as the demand will differ, depending on whether customers anticipate that a price change is permanent or temporary. C. Direct market tests like price experimentation are controlled experiments and will not reflect the effects of other changes in the market. D. Consumers have incentives to be less truthful in their reaction to price changes, which will provide flawed data.