In the absence of government
A) public goods are likely to be overprovided.
B) market failure is less likely to occur.
C) public goods are likely to be underprovided.
D) the free-rider problem is more likely to occur.
C
You might also like to view...
The income elasticity of demand
A) is positive only. B) is negative only. C) must lie between -1 and +1. D) can be positive, negative, or zero.
The quantity demanded of a good
a. is the amount that would be purchased with an unlimited income b. is the amount that would be demanded even if income were zero c. is subject to the buyer's income constraints d. is a fixed amount unaffected by the buyer's circumstances e. must match the amount actually purchased in the market
Suppose that quantity demand rises by 10% as a result of a 15% decrease in price. The price elasticity of demand for this good is
a. inelastic and equal to 0.67. b. elastic and equal to 0.67. c. inelastic and equal to 1.50. d. elastic and equal to 1.50.
Persons in the civilian labor force fall into one of two categories: ____________ or ___________.
a. job leaver; job loser b. entrant; reentrant c. employed; unemployed d. discouraged workers; encouraged workers