Because people can enjoy the benefits of public goods whether they pay for them or not, they are usually unwilling to pay for them. This is known as the
A. free-rider problem.
B. drop-in-the-bucket problem.
C. nonexcludable problem.
D. nonrival problem.
Answer: A
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In order for an increase in aggregate demand to raise Real GDP and the price level, the aggregate supply curve must be ____________________. If an increase in aggregate demand raises the price level but leaves Real GDP unchanged, the aggregate supply curve must be _____________________
A) upward-sloping; vertical B) upward-sloping; horizontal C) downward sloping; vertical D) vertical; upward-sloping E) vertical; downward-sloping
Now, about ____ percent of American married-couple families have two or more wage earners.
A. 35 B. 50 C. 60 D. 90
If CPI overstates the "true" inflation rate, then indexing Social Security benefits to the CPI:
A. costs the federal government billions of dollars. B. saves the federal government billions of dollars. C. has no impact on the dollars spend by the federal government. D. earns the federal government billions of dollars.
The tendency of people to be unwilling to sell a good they already own even if they are offered a price that is greater than the price they would be willing to pay to buy the good if they didn't already own it.
What will be an ideal response?