The free-rider problem can arise when consumption of a good is
A) rival.
B) excludable.
C) nonrival but excludable.
D) nonexcludable.
D
You might also like to view...
Use the following graph to answer the next question.
If the industry were served by a pure monopoly, the deadweight loss would be the area ________.
A. ACE B. AEF C. ACB D. This can't be determined with the information provided in the graph.
What does price elasticity of demand measure? When is demand elastic? Inelastic? Unit elastic?
What will be an ideal response?
By analyzing aggregate demand through its component parts, we can conclude that, everything else held constant, a decline in the inflation rate causes
A) an increase in real interest rates, an increase in investment spending, and a decline in aggregate output demand. B) a decline in real interest rates, a decrease in investment spending, and an increase in aggregate output demand. C) a decline in real interest rates, an increase in investment spending, and an increase in aggregate output demand. D) an increase in real interest rates, a decline in investment spending, and a decline in aggregate output demand.
The "Law of Diminishing Returns" states that
A) additional inputs will reduce output. B) additional inputs will decrease average productivity. C) the supply of inputs is becoming scarce. D) additional inputs will lead to less additional output.