Imposing an entry fee on a public park will:
a. increase the number of free riders
b. decrease the number of free riders.
c. reduce the benefit received by society.
d. increase the marginal cost borne by society.
b
You might also like to view...
Suppose the government spending multiplier is 2. The federal government cuts spending by $40 billion. What is the change in GDP if the price level is not held constant?
A) a decrease of more than $80 billion B) an increase of less than $80 billion C) an increase equal to $80 billion D) an increase of greater than $80 billion E) a decrease of less than $80 billion
The market for money is in equilibrium
A) only if the non-money asset market is in equilibrium. B) whenever the economy is at potential GDP. C) when the cyclical unemployment rate is zero. D) the Fed achieves its target for the expected inflation rate.
Refer to the above figure. Which panel represents what happens in the foreign job market in the short-run when U.S. firms substitute labor outside of the U.S. for labor inside the U.S.?
A) Panel A B) Panel B C) Panel C D) Panel D
If the price of a product falls below average total cost in the short run, the firm
a. has an economic profit b. cannot cover total fixed costs c. experiences a loss d. must always shut down e. should expand output until MC = MR