One problem facing public goods is the ________ ________ problem
a. rent seeking
b. free-rider
c. rational ignorance
d. there are no problems with public goods
b
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When competition is present and property rights secure, people will be encouraged to
a. plunder the resources of others. b. pay the lowest possible wages. c. provide others with things that they value in exchange for income. d. Invest in other countries where markets are less competitive and property rights less secure.
An external BENEFIT occurs when
A. some of the benefits derived from the production or consumption of some good or service are enjoyed by a third party. B. the production or consumption of some good or service inflicts costs on a third party without compensation. C. private costs exceed social costs. D. private benefits exceed private benefits.
Exhibit 12-3 Lorenz curve for an economy
If this economy's distribution of income becomes more equal, then the Lorenz curve shown in Exhibit 12-3 will:
A. move closer to the 45° line. B. become more bowed outward. C. lie above the 45° line. D. shift down and to the right.
Research studies show that the benefit of saving some American jobs in specific industries protected from foreign competition:
A. Is much greater than the costs to the whole American economy B. Is much less than the costs to the whole American economy C. Has fallen in recent years D. Has risen in recent years