The "free rider" problem occurs when a good is
a. not available.
b. not excludable.
c. not depletable.
d. not sold in free markets.
b
You might also like to view...
According to your textbook authors, laws restricting competitors
A) restrict competition. B) reduce greed. C) promote economic fairness. D) improve the alternatives available to customers.
Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6. What does this mean?
A) A 1 percent decrease in the price of grapefruit juice leads to a 6 percent increase in orange juice consumption. B) A 6 percent increase in the price of grapefruit juice leads to a 1 percent increase in orange juice consumption. C) The demand for orange juice is 6 times greater than the demand for grapefruit juice. D) If the price of grapefruit juice rises by $1, 6 more cartons of orange juice will be purchased.
According to the classical economists, if there is a recession, the government should ________.
Fill in the blank(s) with the appropriate word(s).
Which of the following is not a reason why marketable permits may fail to achieve efficiency?
A. Some firms can reduce emissions at a lower cost than other firms. B. A market has a small number of buyers and sellers. C. Imperfect information exists on the value of a permit. D. There are concerns about the value of permits in the future.