Because of the free-rider problem, ________
A) there is an efficient allocation of resources for common resources
B) private provision leads to the production of more than the efficient quantity of a public good
C) private provision leads to the production of less than the efficient quantity of a public good
D) the public uses too little of a common resource
C
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How does an increase in income affect the market of iPads (normal good)?
a. The demand curve for iPads to shift to the right b. The demand curve for iPads to shift to the left c. The supply curve for iPads to shift to the right d. The supply curve for iPads to shift to the left
An active monetary policy that attempts to smooth out the business cycle would involve conducting ________ monetary policy during recessions and ________ monetary policy during expansions.
Fill in the blank(s) with the appropriate word(s).
A firm's retaining of earnings is really equivalent to the firm
A. decreasing the net worth of households. B. decreasing its own net worth. C. lending money to households. D. borrowing money from households.
If the exchange rate falls, the quantity of dollars supplied
A) increases, and there is movement up along the supply curve of dollars. B) increases, and there is movement down along the supply curve of dollars. C) decreases, and there is movement up along the supply curve of dollars. D) does not change. E) decreases, and there is movement down along the supply curve of dollars.