The free rider problem refers to a situation in which
A) the marginal cost of allowing additional consumers to consume a public good is zero.
B) high income individuals subsidize the production of goods, such as education, that make society better off.
C) people consume a pure public good without payment, even though the good may not be produced if no one chooses to pay.
D) markets fail to allocate resources efficiently when benefits outweigh costs.
C
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In the United States, although people in different income groups pay different tax rates, every dollar earned by a specific individual is taxed at the same rate
Indicate whether the statement is true or false
In case of an increase in product prices:
A) the quantity effect always dominates the price effect. B) the price effect always dominates the quantity effect. C) when the quantity effect dominates the price effect, total revenue is rising. D) when the quantity effect dominates the price effect, total revenue is falling.
List the three coordination decisions made by every economy.
A. Where? When? How? B. How? What? To whom? C. Why? Where? What? D. When? To Whom? Where?
The marginal revenue product of a resource is equal to the value of marginal product when the product produced by the resource is sold in
a. a competitive price-taker market. b. a competitive price-searcher market. c. an oligopolistic market. d. a monopolistic industry.