Collective goods tend to be underprovided by private markets because:
A. it's not socially optimal for the price of these goods to be greater than zero.
B. of the free-rider problem.
C. of inefficiencies in the income tax system.
D. these types of goods are usually provided by the government instead.
Answer: A
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If a country is currently lending more to the rest of the world than it is borrowing from the rest of the world, the country is a
A) net borrower. B) debtor nation. C) net lender. D) creditor nation.
The reforms that were put in place in the Soviet Union after 1985 were called
a. The Lieberman proposals b. The Kosygin reform c. Organizational reform d. Perestroika e. None of the above
A firm has a fixed cost of $700 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000 . The marginal cost of producing the 100th unit of output is $200 . What is the total cost of producing 100 units?
a. $42 b. $900 c. $4,200 d. $4,900
Whenever a society forgoes current consumption to invest in capital goods,
A) the less the society can consume next year. B) the easier it will be for the society to consume less in the future because people will become accustomed to less. C) the more the society can consume in the future. D) the less capital the society can produce in the future.