Which of the following statements is true of free riding?
A) Free riding is easy to detect and punish.
B) Free riding reduces with social pressure.
C) Free riding is not affected by incentives.
D) Free riding does not impose a cost on society.
B
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Interest and capital gains are taxed differently in the United States in that
A) interest is exempt from state and local taxes. B) interest is taxed as ordinary income, but capital gains are taxed only when realized. C) interest is taxed as ordinary income, but capital gains are taxed as accrued. D) capital gains when realized are exempt from state and local taxes.
Scarcity is the result of:
a. government decision making b. inappropriate normative judgments. c. positive economics. d. wants that exceed the resources necessary to provide them.
Some take issue with the human capital argument that employers pay more for college graduates because firms recognize the value of human capital. What are two alternative explanations for why college grads receive higher pay?
A price-discriminating monopoly charges the lowest price to the group that:
A. has the most elastic demand. B. purchases the largest quantity. C. engages in the most arbitrage. D. is least responsive to price changes.