Why are free riders a common problem for public goods?
A. Public goods are non-excludable and therefore people do not have to pay for the good to use it.
B. Public goods are non-rivalrous and therefore one person's use diminishes another's use.
C. Public goods are non-rivalrous and therefore people do not have to pay for the good to use it.
D. Public goods are non-excludable and therefore one person's use does not diminish another's use.
Answer: A
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GDP is defined as the market value of all ________ in a given time period
A) final goods produced in a country B) final goods and services produced by citizens of a particular country regardless of where in the world they are located C) final goods and services produced in a country by only the citizens of the country D) final goods and services produced in a country
When price exceeds average variable cost in the short run, a competitive firm's marginal cost curve is regarded as its supply curve because
a. the position of the marginal cost curve determines the price for which the firm should sell its product. b. among the various cost curves, the marginal cost curve is the only one that slopes upward. c. the marginal cost curve determines the quantity of output the firm is willing to supply at any price. d. the firm is aware that marginal revenue must exceed marginal cost in order for profit to be maximized.
In monopolistic competition, firms can have some market power
A. because of barriers to entry into the industry. B. by producing differentiated products. C. because of barriers to exit from the industry. D. by virtue of size alone.
Recall the Application about how the effect of a more dangerous job on wages may be used to calculate the value of a statistical life to answer the following question(s).According to the Application, if a worker is willing to take a $2,000 pay cut in order to reduce the probability of dying by .001, then the value of a statistical life is:
A. $2,000,000. B. $2,000.001. C. $2. D. $20,000,000.