When the government privatizes a common resource, it does all of the following except:
A. forces the owner to consider all the costs and benefits of their consumption choices.
B. creates excludability.
C. increases efficiency.
D. increases undesirable side effects.
D. increases undesirable side effects.
You might also like to view...
Because firms selling a homogeneous product set price in response to the (perceived) pricing decision of other firms in the Bertrand Model of oligopoly in equilibrium price exceeds marginal cost
Indicate whether the statement is true or false
An inferior good is a good whose quantity demanded
a. rises when its price falls. b. falls when the price of a related good falls. c. falls when the consumer's total utility rises. d. rises when the consumer's real income falls.
Compared to the price of long-distance telephone calls, college tuition in the United States has
a. fallen. b. risen. c. stayed the same. d. risen at the same rate as the CPI.
When people are in financial difficulty an advisor will usually recommend establishing a budget for spending. One reason is that a budget will act to discipline behavior if people psychologically are subject to
A. mental accounts. B. bounded rationality. C. segregated gains. D. the halo effect.