The government provides public goods because
a. private markets are incapable of producing these types of goods.
b. free-riders make it difficult for private markets to supply the socially optimal quantity.
c. markets are always better off with some government oversight.
d. external benefits will accrue to private producers.
b
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The long-run average cost curve is U-shaped because of which of the following?
A) decreasing marginal returns as more labor is hired B) constant fixed costs as output is increased C) economies and diseconomies of scale D) increasing marginal returns as more labor is hired E) decreasing average fixed costs as output is increased
The marginal product of capital (MPK) measures ________
A) by how much output increases for each additional unit of capital B) by how much capital increases for each additional unit of output C) by how much capital increases for each additional unit of labor D) by how much total factor productivity increases for each additional unit of capital E) none of the above
A share of stock is
A) a claim on the assets of the corporation that gives the purchaser an ownership right in the corporation. B) the share of profits distributed to stockholders. C) a promise to pay for the use of someone else's money. D) a promise to loan money to someone. E) a and b
If a country passes a labor law limiting the number of hours of work per week, GDP would ________ and leisure would ________
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease