The free rider problem occurs when
a. individual gainers will not contribute the side payment needed for an efficient outcome
b. those harmed will not contribute the side payment needed for an efficient outcome
c. side payments are not necessary for an efficient outcome
d. the marginal cost of arranging a side payment is zero
e. the total cost of arranging a side payment is zero
A
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Which of the following is least likely to be considered an input to production?
A) a supervisor's time B) an integrated circuit fabrication plant C) wind D) None of the above.
Suppose households attempt to decrease their money holdings. To counter this decrease in money demand and stabilize output, the Federal Reserve will
a. increase government spending. b. increase the money supply. c. decrease government spending. d. decrease the money supply.
Which is not a good method of providing public type goods by private means?
A. Clubs B. Free markets with competing entrepreneurs C. Funding by donation D. Private contracts
If the firm has no competitors, the marginal revenue curve is
A. downward sloping. B. vertical. C. flat (horizontal). D. upward sloping.