A friend of yours receives a government voucher for an apartment in a public housing project. This apartment represents
A) a government-sponsored good.
B) the free-rider problem.
C) a public good.
D) the drop-in-the-bucket problem.
A
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Regarding economic models, which of the following statements is NOT true?
A. An economic model is a simplified representation of a theory or part of a theory. B. An economic model can provide clear answers for policy makers. C. An economic model can clarify an important economic problem. D. An economic model can show three-variable diagrams.
Pareto improvements that require the use of side payments typically are easy to coordinate and tend to enhance economic efficiency
a. True b. False
Though Nash games are noncooperative, a cooperative outcome is more likely if
A. firms can easily monitor the outcomes from cooperation. B. firms can easily monitor the outcomes from rivals' defection. C. firms expect the market relationship to last only for a short time. D. the long-run gains are smaller than the short-run gains.
Refer to the information provided in Figure 6.10 below to answer the question(s) that follow.
Figure 6.10Refer to Figure 6.10. The current price of a turkey sandwich is $4. If Kyle is currently buying seven turkey sandwiches a week, he ________ maximizing utility because the marginal utility ________ than its price.
A. is; from the seventh sandwich is greater B. is not; gained from the seventh sandwich is less C. is; from the seventh sandwich is less D. is not; gained from the seventh sandwich is greater