One way the government provides public goods is by ________________, which helps to spread the cost around and eliminates the free-rider problem.
a. supporting research and development
b. charging per-use fees, such as tolls
c. taxation
d. exclusionary participation
c. taxation
If people come together through the political process and agree to pay taxes and make group decisions about the quantity of public goods, they can defeat the free-rider problem by requiring, through the law, that everyone contributes.
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The time it takes for a new policy to register its full impact on the economy after it has been put in force is known as the_____
a. activity lag b. decision-making lag c. effectiveness lag d. implementation lag e. recognition lag
A portfolio of stocks, bonds, and other investments helps reduce the risk of investment
a. True b. False Indicate whether the statement is true or false
Samantha goes to the grocery store to make her monthly purchase of ginger ale. As she enters the soft drink section, she notices that the price of ginger ale has increased 15 percent, so she decides to buy some peppermint tea instead. To which problem in the construction of the CPI is this situation most relevant?
a. substitution bias b. introduction of new goods c. unmeasured quality change d. income effect
In the table below are statistics showing the civilian non-institutional population, the civilian labor force and total employment in year 1 and year 2. Make the computations necessary to complete the table. (Number of persons is in thousands.)
