Most economists believe that the market __________ produce nonexcludable public goods because of the __________.
A. will; monetary incentive they have to produce them
B. will not; externality problem
C. will not; free rider problem
D. will; market shortage that often accompanies the production of public goods.
E. none of the above
Answer: C
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Figure 11-2
For the monopolist show in Figure 11-2, how much profit is the monopolist making per unit?
A. The amount shown as HE B. The amount shown as GE C. The amount shown as HF D. The amount shown as FE
In a long-run equilibrium in a perfectly competitive market, firms are selling at a price equal to marginal cost
a. True b. False Indicate whether the statement is true or false
Which of the following increases the quantity supplied of agricultural goods?
A) acreage allotments B) assigning market quotas C) agricultural price supports D) a, b, and c
The Great Recession of 2008-09 was an ideal case for fiscal policy because:
A. a healthy financial sector improves the timeliness of expansionary fiscal policy. B. targeting and timeliness are less important when a recession is the result of the bursting of an asset bubble. C. the most-easy-to-target sectors were those that were the most affected by unemployment. D. targeting and timeliness are less important when a recession is very severe and lasts a long time.