Which of the following types of goods is subject to the free-rider problem?
A) a private good
B) a public good
C) a product that creates a positive externality
D) a product that creates a negative externality
B
You might also like to view...
When measuring the actual output produced in an economy, one should focus on GDP measured in nominal terms
Indicate whether the statement is true or false
While monopoly power can be abused, it can also be used beneficially. What are the major pros and cons of largeness in business?
What will be an ideal response?
Which of the following was the nation's first true central bank?
(A) Federal Deposit Insurance Corporation (B) Bank of the United States (C) Federally chartered bank of the Civil War (D) Federal Reserve System
In the event of excess supply in the coffee market:
A. the price of coffee will increase. B. the price of coffee will decrease. C. the supply of coffee will decrease (supply will shift to the left) to meet the demand. D. the demand for coffee will increase (demand will shift to the right) to meet the supply.