Public goods are characterized by the free-rider problem because
A. public goods are characterized by the principle of rival consumption.
B. public goods can easily be subdivided into small units.
C. no one can be excluded from the benefits of public goods once they are produced.
D. public goods are usually things that people really do not want to consume.
Answer: C
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A. depreciate; depreciate B. appreciate; depreciate C. depreciate; appreciate D. appreciate; appreciate
According to this Application, ________ regimes have difficulty coping with the changes arising from sustained technological progress
A) all political B) authoritarian C) participatory D) democratic
If the expected path of 1-year interest rates over the next four years is 5 percent, 4 percent, 2 percent, and 1 percent, then the expectations theory predicts that today's interest rate on the four-year bond is
A) 1 percent. B) 2 percent. C) 3 percent. D) 4 percent.
Suppose Alice is deciding whether or not to go to a New York Giants game. Alice's enjoyment and thus decision, depends upon two uncertain events that are out of her control: whether the Giants win and whether it snows. She will be happiest if the Giants win and it does not snow. The newspaper reports a 35% chance for snow and the Giants record suggests a 40% chance of winning. The probability that the Giants win and that it does not snow is:
A. 75%. B. 5%. C. 26%. D. 35%.