Which of the following is not a consideration when attempting to eliminate a free rider problem or tragedy of the commons problem?
A. The social costs must be realized by the individual.
B. Something must be done to alter individuals' trade-offs.
C. Market participants must internalize the value of the externality.
D. Firms must be forced to provide the good or service at a price that is below profit maximizing price.
D. Firms must be forced to provide the good or service at a price that is below profit maximizing price.
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Once the federal funds rate hits zero, a central bank seeking to stimulate its economy further must turn to unconventional monetary policies.
Answer the following statement true (T) or false (F)
Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes. The figure above illustrates his production possibilities frontier. What is Gabriel's opportunity cost of growing another ton of potatoes?
A) 0 cows B) 1 ton of potatoes C) 80 cows D) 400 cows E) 100 cows
The interpretation of the slope coefficient in the model ln(Yi) = ?0 + ?1Xi + ui is as follows:
A) a 1% change in X is associated with a ?1 % change in Y. B) a change in X by one unit is associated with a 100 ?1 % change in Y. C) a 1% change in X is associated with a change in Y of 0.01 ?1. D) a change in X by one unit is associated with a ?1 change in Y.
As a portion of total assets measured in billions of dollars, the least important asset on the Fed's balance sheet is:
A. loans. B. foreign exchange reserves. C. securities. D. gold.