Markets may have difficulty providing the proper quantity of a public good because
a. individuals will tend to become free riders, and private firms will have difficulty generating enough revenue to produce an efficient quantity of the good.
b. the good generally has a very large value to consumers relative to its cost of production.
c. the good is one that tends to benefit a large number of people.
d. the large profit involved in the production of a public good is generally too much for private firms to effectively pay out to shareholders.
A
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A person's productive contribution in a capitalist society is measured by determining the
A) market value of the individual's output. B) comparable output of other workers in similar jobs. C) total number of goods produced by the individual. D) index of occupational values.
Based on the circular flow model, goods and services flow from:
a. households to businesses in product markets. b. businesses to households in product markets. c. households to businesses in factor markets. d. businesses to households in factor markets.
If the price for a good was $5 and the government wanted the price to be $10, it would impose a $5 price floor
Indicate whether the statement is true or false
Which of the following examples is shown in this graph?
a. The buyer pays $0.50 of a $0.50 tax.
b. The buyer pays $0.40 of a $0.50 tax.
c. The seller pays $0.50 of a $0.50 tax.
d. The seller pays $0.40 of a $0.50 tax.