The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible
a. True
b. False
Indicate whether the statement is true or false
True
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If the multiplier in the economy is 3, the marginal propensity to save (MPS) must be
A) 3. B) 0.67. C) 0.33. D) 1.
When you have diminishing marginal returns to labor
A) variable costs remain constant as more output is produced. B) variable costs fall as more output is produced. C) variable costs rise as more output is produced. D) fixed costs rise as more output is produced because you have to buy more equipment to compensate.
The most likely complementary good for cereal would be:
A. a bagel. B. milk. C. pizza. D. a sub sandwich.
To understand the pressures and temptations on member firms in an oligopoly, economists have applied the game theory scenario of the ___________________, in which the gains from cooperation are larger than the rewards from pursuing self-interest.
a. Prisoner’s Dilemma b. Traveler’s Dilemma c. Platonia Dilemma d. Volunteer’s Dilemma