A free rider is a person who:
A. is harmed by another's actions.
B. is subject to a negative externality.
C. receives benefits from someone else's action but does not pay for them.
D. pays less than the full value for a product.
Answer: C
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The study of microeconomic theory focuses on the:
A) Interaction of international trade and domestic production of goods and services. B) Operation of the entire economy. C) Role of the banking system in the economy. D) Structure and performance of markets and the operation of the price system.
What would be the economic dangers of eliminating patent protection in the pharmaceutical industry as a means of "eliminating monopoly power"?
What will be an ideal response?
Horizontal mergers involve firms in different industries
a. True b. False
Which of the following is true?
a. The incentives to engage in rent-seeking activities increase with the ease with which the political process can provide personal gain at the expense of others. b. The amount of resources devoted toward rent seeking generally has no impact on the economic prosperity of a nation. c. Income transfers directed toward the poor constitute about half of all income transfers in the United States. d. All of the above are correct.