What is the free-rider problem? What results from the free-rider problem? What is a solution to the free-rider problem?
What will be an ideal response?
Ques. 2The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, the equilibrium price per ton will be
A) 70.
B) 80.
C) 90.
D) 100.
Ques. 3Suppose firms in a perfectly competitive market are incurring an economic loss. As firms exit, the price ________ and the economic loss of the surviving firms ________.
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
Ques. 4The Gini ratio in Brazil was over 0.6 in 1990 and fell to 0.5 in 2010. This change means that over this time inequality ________ and the Lorenz curve moved ________ the 45 degree line.
A) increased; closer to
B) increased; further away from
C) decreased; closer to
D) decreased; further away from
Ques. 5Economies of scope are cost reductions achieved by
A) the production of multiple, related products.
B) the production of large amounts of a single product.
C) limiting the size of the firm.
D) increasing firm size.
Ques. 6Which two goods will most likely have indifference curves that are straight lines?
A) blue and red balloons
B) left and right shoes
C) pizza and hair spray
D) beef and chicken
Ques. 7In the above figure, the average fixed cost curve is curve
A) A.
B) B.
C) C.
D) D.
Ques. 8Which of the following increases the demand for U.S. union labor?
A) an increase in the minimum wage
B) an increase in the demand for imported goods
C) new laws that ease immigration restrictions
D) All of the above cause an increase in the demand for union labor.
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