The free-rider problem implies that:
A. each person will pay the full cost of the public good.
B. nobody wants the public good.
C. everybody will pay a portion of the cost of the public good.
D. each person will try to benefit from the public good without paying for it.
Answer: D
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One of the reasons fiscal and monetary policy can stimulate output and employment in the short run is that nominal wages increase faster than the price level
a. True b. False Indicate whether the statement is true or false
What type of economic system is commonly described as being controlled by an "invisible hand"?
a. A traditional economy. b. A command economy. c. A market economy. d. A communist economy.
Javier’s government has decided to make school attendance a requirement for everyone under the age of 18. What determinant of productivity and economic growth is Javier’s government investing in?
a. technology b. human capital c. natural resources d. physical capital
Technological change is most likely to affect:
A. seasonal unemployment. B. cyclical unemployment. C. frictional unemployment. D. structural unemployment.