Economists believe that free riders often can undermine the social commitment of many in the society, causing voluntary policies to fail.
Answer the following statement true (T) or false (F)
True
Economists believe that the incentive facing individuals is to maximize individual utility. This would lead to an individual cheating (free riding) to reduce marginal cost while enjoying the benefits of others' actions.
You might also like to view...
The inputs used to produce cupcakes (e.g., flour, sugar, butter, and labor) are also used to produce cookies, cakes, muffins, pies and many other goods. This suggests that:
A. the elasticity of supply of cupcakes is relatively low. B. cupcakes are a normal good. C. the supply curve for cupcakes is downward sloping. D. the elasticity of supply of cupcakes is relatively high.
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.
Suppose that goods A and B are close substitutes. If the price of good A falls, then we would expect an
What will be an ideal response?
The price elasticity of demand for alfalfa is perfectly elastic. Thus, the price elasticity demand for alfalfa is
A. 1.0. B. 0.0. C. -1.0. D. infinity.