Because people can enjoy the benefits of public goods whether they pay for them or not, they are usually unwilling to pay for them. This is known as the
A. nonexcludable problem.
B. free-rider problem.
C. drop-in-the-bucket problem.
D. nonrival problem.
Answer: B
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Which of the following policies would be expected to increase private saving?
A. Reducing the tax rate on capital gains and dividends. B. Increasing the income tax. C. Increasing job security. D. Providing more generous Social Security retirement benefits.
Which of the following is a similarity between an English auction and a Dutch auction?
A) The second-highest bidder wins the good in both auctions. B) The bidder who values the good the most wins it in both auctions. C) The bidders submit their bids privately at the same time in case of both auctions. D) In both auctions, the bidders submit their bids privately at different times during the bidding process.
A monopolistic firm
A) will never sell a product whose demand is inelastic at the quantity sold. B) can sell as much as it wants for any price it determines in the market. C) cannot determine the price, which is determined by consumer demand. D) cannot sell additional quantity unless it raises the price on each unit. E) will always earn a profit in the long run.
If policymakers are expected to increase the money supply, Monetarists argue that there is __________ effect. There is __________ effect that raises prices when the money supply actually increases
A) a small liquidity; an income B) no; an income C) a small income; a liquidity D) no; a liquidity