In the presence of the free-rider problem, the market will provide ________ of a good or service.
A. more than the socially optimal quantity
B. either more than or less than the socially optimal quantity
C. the socially optimal quantity
D. less than the socially optimal quantity
Answer: D
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Economists at which administrative department help design tax policy?
Suppose a firm uses workers and office space to produce output. The firm is locked into a year-long lease on its office space, but it can easily vary the number of employee-hours it uses each day. The accompanying table describes the relationship between the number of employee-hours the firm uses each day and the firm's daily output. Each unit of output sells for $2, the hourly wage rate is $14, and the rent on the office space is $50 per day.Employee-Hours Per DayOutput Per Day0014048091201516023200 What is the marginal cost of production between 80 and 120 units of output each day?
A. $70 B. $14 C. $1.75 D. $1.40
If D represents firms and B represents resource markets, then the flow from D to B is _____
a. revenue. b. expenditures. c. labor, capital, and natural resources. d. income and expenditures. e. wages, interest, rent, and profit. check image at top
Exhibit 2-18 Production possibilities curves
In Exhibit 2-18, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This economy:
A. is worse off in Year Y than in Year X. B. has stagnated production in this two year period. C. has less unemployment in Year Y than it did in Year X. D. has shown growth between these two years.