Which of the following statements is not correct?
a. A free rider is a person who benefits from something for which he or she does not have to pay.
b. The creation of general knowledge is a public good.
c. The Tragedy of the Commons illustrates the underuse of a common resource.
d. A gasoline tax is an imperfect solution to the problem of traffic congestion on public roads.
c
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If this is an open economy, the price of a car will be ________. 
A. $8,000/car B. $6,000/car C. $10,000/car D. $14,000/car
The purpose of a political action committee is
a. to help elect officials sympathetic to its members' special interests b. to help elect officials who will enact fair legislation c. to raise money for public interest groups d. to exchange trade secrets e. to allow special-interest groups to be elected
You are trying to design a tax system that will simultaneously achieve both of the following goals: 1) two people with the same total income would pay taxes of the same amount, and 2) a high-income person would pay a higher fraction of income in taxes than a low-income person. Which of the following tax systems could achieve both goals?
a. a lump-sum tax b. a regressive tax c. a progressive tax d. a proportional tax
A perfectly inelastic demand:
A. has an absolute value greater than 1. B. is demonstrated by a perfectly horizontal demand curve. C. means people will quickly change the quantity they purchase when price changes. D. means people will not respond to any change in price.