Which one of the following is NOT a characteristic of public goods?
A. Public goods can be used by increasing numbers of people at no additional cost.
B. It is difficult to charge people on the basis of how much they use.
C. Public goods are subject to the principle of rival consumption.
D. They are indivisible.
Answer: C
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What can lead to the shift illustrated in the figure above?
What will be an ideal response?
Assume there is a surplus in the market for hybrid automobiles. Which of the following statements correctly describes this situation?
A) Some consumers will be unable to obtain hybrid automobiles at the market price and will have an incentive to offer to buy the product at a higher price. B) The supply of hybrid automobiles is greater than the demand for hybrid automobiles. C) the surplus will cause an increase in the equilibrium price of hybrid automobiles. D) The price of hybrid automobiles will fall in response to the surplus; as the price falls the quantity demanded will increase and the quantity supplied will decrease.
The Franklin National Bank Crisis had its greatest impact on the market for
A) commercial paper. B) commodity futures. C) negotiable certificates of deposit. D) Eurodollars.
The likelihood of successful collective action:
A. generally does not depend on the size of the group. B. can be lower for small groups. C. can be higher for large groups. D. can be lower for large groups.