A free-rider problem arises whenever:
a. goods cannot be provided exclusively to those who pay for them.
b. the price of a good is very low
c. the government provides goods or services.
d. goods cease to be scarce.
a
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What is the difference between the short run and the long run?
What will be an ideal response?
After the depression of the 1930s and the interruption of World War II, in the post-war period (1945–50) private investment
(a) fell back to the 1920s level. (b) rose to unprecedented levels. (c) collapsed in the 1948 downturn and then returned to the stagnation levels of the 1930s. (d) did none of the above.
If the price elasticity of demand for a good is .75, the demand for the good can be described as:
A. inelastic. B. normal. C. elastic. D. inferior.
The purpose of the Corn Laws was to
A. encourage imports and discourage exports, and thus keep the price of food low. B. discourage both imports and exports in order to promote economic self-sufficiency in Britain. C. discourage imports and encourage exports, and thus keep the price of food high. D. encourage both exports and imports in order to integrate the British economy with the rest of Europe.