The free-rider problem is the absence of an incentive for
A) firms to produce public goods.
B) people to use common resources.
C) people to pay for what they consume.
D) people to vote.
C
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Why is price discrimination legal but not discrimination based on race or gender?
A) because price discrimination enables firms to increase output and employment, but race- or gender-based discrimination reduces employment B) because price discrimination reduces deadweight loss, but discrimination based on race or gender increases deadweight loss C) because price discrimination involves charging people different prices based on their willingness to pay rather than on the basis of arbitrary characteristics D) because price discrimination increases profits and therefore tax revenues for the government, but discrimination based on race or gender reduces tax revenues
When money serves as a store of value, it allows you to
A) transfer wealth into the future. B) eliminate a double coincidence of wants. C) be an effective negotiator. D) find good bargains.
If the price of food falls by 10 percent and the quantity sold increases by 5 percent, then the price elasticity of demand in that range equals
a. 2, and demand is elastic b. 0.5, and demand is elastic c. 2, and demand is inelastic d. 0.5, and demand is inelastic e. 15, and demand is elastic
If in some year real GDP was $25 billion and the GDP deflator was 68, what was nominal GDP?
a. $2.72 billion. b. $17 billion. c. $36.8 billion. d. $43 billion.