Public goods are those for which there:
A. is no free-rider problem.
B. are no externalities.
C. are nonrivalry and nonexcludability.
D. are rivalry and excludability.
Answer: C
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In the above figure, at the price level of 140 and real GDP of
A) $15 trillion, firms will not be able to sell all their output. B) $5 trillion, firms will not be able to sell all their output. C) $5 trillion, consumers will not be able to buy all the goods and services they demand. D) $15 trillion, consumers will not be able to buy all the goods and services they demand.
In an oligopoly, the total output produced in the market is
a. higher than the total output that would be produced if the market were a monopoly and higher than the total output that would be produced if the market were perfectly competitive. b. higher than the total output that would be produced if the market were a monopoly but lower than the total output that would be produced if the market were perfectly competitive. c. lower than the total output that would be produced if the market were a monopoly but higher than the total output that would be produced if the market were perfectly competitive. d. lower than the total output that would be produced if the market were a monopoly and lower than the total output that would be produced if the market were perfectly competitive.
The problem of economic scarcity applies
A) only in industrially developed countries because resources are scarce. B) only in underdeveloped countries because there are no productive resources. C) only in economic systems that are just beginning to develop because specialized resources are scarce. D) to all economic systems, regardless of their level of development.
A firm that responds to a regulatory rule in a way that permits technical compliance while allowing the firm to violate the spirit of the regulation has
A) reduced the scope of the lemons problem. B) shared the gains and pains of regulation. C) engaged in a creative response to regulation. D) become a captured regulator.