Markets tend to produce too little of an excludable public good because
A) transaction costs are high.
B) of the lack of rivalry.
C) these goods are depletable.
D) All of the above.
B
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Incentives matter
What will be an ideal response?
Hyperinflation is
A) inflation caused by negative growth in the quantity of money. B) inflation at a rate that exceeds 5 percent a month. C) only theoretical and has never occurred in the real world. D) inflation caused by excessive growth in the demand for money. E) inflation at a rate that exceeds 50 percent a month.
The rate at which one good can be converted technologically into another is called
A) the marginal rate of transformation. B) the marginal rate of substitution. C) the marginal product of labor. D) the rate of conversion.
As a general rule, antitrust authorities refer to any firm with a market share above ________ percent as a monopoly even though it is technically a dominant firm.
A) 66 B) 75 C) 95 D) 50