The free-rider problem arises because:
A.) Private goods are not available.
B.) Most public goods involve illegal activity.
C.) People prefer private goods.
D.) Public goods can be jointly consumed.
D.) Public goods can be jointly consumed.
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A production possibilities curve shows the relationship between:
A) the price of a good and its quantity supplied. B) the maximum production of one good for a given level of production of another good. C) the different combinations of two inputs used to produce a given quantity of output. D) the quantity of output produced and the amount of inputs required for the production of the output.
In the long run in monopolistic competition, the demand curve facing the typical firm
a. is perfectly elastic b. slopes upward c. is tangent to the firm's average total cost curve d. lies above the firm's average total cost curve e. is the same as the portion of the firm's marginal cost curve above average variable cost
Which of the following is a limitation of the aggregate expenditure model?
a. It always assumes changes in price level create changes in autonomous consumption. b. It always assumes the economy is at equilibrium. c. It does not allow for changes in aggregate demand. d. It does not allow for the economy to self-correct.
What are the implications of a liquidity trap for the Federal Reserve?
What will be an ideal response?