Because of the free-rider problem,
a. competitive markets will tend to undersupply public goods.
b. the federal government spends too much on national defense.
c. fireworks displays have become increasingly dangerous.
d. poverty has increased.
A
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Suppose the price of capital and labor remain constant. As a firm's expenditures for capital and labor increase, its isocost line
A) rotates outward on the Y-intercept. B) shifts in parallel to the original isocost line. C) rotates outward on the X-intercept. D) shifts out parallel to the original isocost line.
If real GDP is $4 billion, the price level is 1.25, and the nominal money stock is $500 million, then velocity is
A) 0.1. B) 1. C) 10. D) 100.
Union members earn about the same wage level as nonunion members in the same industry
a. True b. False Indicate whether the statement is true or false
A price floor is a government-mandated
A) minimum price below which legal trades cannot be made. B) maximum price above which legal trades cannot be made. C) minimum price at which all units of the good must be legally sold. D) minimum price below which legal trades can be made.