The free rider problem suggests that a producer will tend to:
a. produce more than the optimal quantity of a public good
b. produce less than the optimal quantity of a public good.
c. produce the optimal quantity of a public good if it is funded out of tax revenue.
d. do none of the above.
b
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With respect to property rights and production, explain the differences between the economic organizations known as communism, capitalism, and socialism
What will be an ideal response?
Under the gold standard, gold discoveries in Alaska and South America led to
a. both c and d b. a decrease in the domestic money supply c. inflation d. an increase in the domestic money supply e. deflation
In the long run, when price is less than average total cost for all possible levels of production, a firm in a competitive market will choose to exit (or not enter) the market
a. True b. False Indicate whether the statement is true or false
A horizontal merger
A) is a merger between firms in the same industry. B) results in a trust (for example, the Standard Oil Company). C) is a merger between firms at different stages of production of a good. D) was illegal in the United States until the Federal Trade Commission Act was passed by Congress in 1914.