The market tends to underproduce public goods.
Answer the following statement true (T) or false (F)
True
The market mechanism leads to underproduction of public goods because everyone would wait for someone else to pay.
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What is marginal benefit? Which curve is also referred to as a marginal benefit curve?
What will be an ideal response?
Utility is the set of numerical values that
A) yields an absolute level of pleasure from a bundle of goods. B) reflects the relative ranking of various bundles of goods. C) describes how much more a consumer prefers one bundle to another. D) yields a cardinal ranking of bundles.
Regulations to reduce pollution
a. cause pollution levels to drop below the regulated amount. b. are typically a more costly solution to society than a corrective tax. c. allow firms with the lowest cost to reduce pollution by more than those with the highest costs. d. are a better solution for the environment than a corrective tax.
In order to calculate GDP from the value of net domestic product at factor cost, we have to add
What will be an ideal response?