Identify the disadvantage of public goods
As public goods are nonrivalrous and nonexcludable, they lead to the free-rider problem where people want to enjoy the benefits without paying the costs. Free-rider incentives make it difficult to accurately elicit peoples' preferences for the public goods and to fund their production.
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Firms often seek to borrow money to expand their capital stock, and the price they pay for that money is the interest rate. What happens to the quantity of money supplied if the interest rate increases?
A. It increases. B. It decreases. C. It does not change. D. It depends entirely on the interest rate.
Jayanthi moves her yoga studio from her home to a space she rents in Oakland, California. Holding everything else constant, as a result of this move
A) her implicit cost falls and her explicit cost rises. B) her opportunity cost rises. C) her economic cost rises. D) her explicit cost falls and her implicit cost rises.
Refer to Figure 10.9. Other things equal, an increase in the nominal money supply by the Fed is best represented as a change in equilibrium from
A) point A to point B. B) point A to point D. C) point C to point B. D) point C to point D.
Over the long term, the stock market has ______.
a. lost money across the board b. outperformed other investment categories c. underperformed money left in savings accounts d. maintained a steady value, without major losses or gains