Econ Exam 3 #2
128. According to economists, a binding price ceiling on rental apartments is likely to be a good way to a. help the poor. b. make rental apartments affordable for everyone. c. create a shortage in rental apartments. d. help reduce the rental apartment shortage. e. increase the demand for rental apartments.
c
183. Externalities occur when a. not all the costs of an action are taken into account by the actor. b. not all the benefits of an action are taken into account by the actor. c. the marginal costs are greater than the marginal benefits. d. All of the above. e. Either a or b.
e
104. In a freely operating market, when there is excess demand or excess supply a. price adjusts to bring quantity supplied and quantity demanded into balance. b. there will be a shortage or a surplus. c. the country will be an importer or an exporter. d. demand will decrease or supply will decrease.
a
110. Externalities occur because a. people take primarily the costs and benefits they get themselves into account. b. when quantity demanded is less than quantity supplied, shortages occur. c. taxes may shift either demand curves or supply curves. d. trade barriers reduce social surplus.
a
112. Why are taxes so often imposed on things like land or salt? a. Because tax revenue is higher when supply or demand is inelastic. b. Because neither is a necessity. c. Because wealthier people have more of each. d. Because demand for each is elastic, so no one minds buying less.
a
113. Except if supply or demand is perfectly inelastic, when a good is taxed, a. less of it is produced. b. the same amount is produced, but it costs more. c. producers simply pass the whole tax on to consumers. d. All of the above.
a
115. Suppose a fee is imposed on the development of all open land. Most of that tax will be borne by landowners (the suppliers) if a. demand is more elastic than supply. b. supply is more elastic than demand. c. developers keep on buying open land anyway. d. The tax will always be shared equally between developer and landowner.
a
121. The term "externalities" refers to a. consequences that actors do not take into account in making decisions. b. most social interactions. c. the superficial consequences of economic decisions. d. the fact that few people external to economics understand economic reasoning. e. goods such as exports that come from external countries.
a
132. Why does the equilibrium quantity of ice cream fall when summer is unexpectedly cold? a. demand decreases (the curve shifts). b. supply decreases (the curve shifts). c. the marginal cost of ice cream increases. d. All of the above. e. Just A and B.
a
135. Suppose that there is a binding price ceiling imposed on the market for peaches. (Draw the graph!) As a result, a. the quantity of peaches demanded will be greater than the quantity supplied. b. the quantity of peaches demanded will be equal to the quantity supplied. c. the quantity of peaches demanded will be smaller than the quantity supplied. d. the quantity of peaches demanded will be restricted by the price ceiling.
a
145. The effect of the 1970s' price ceiling on gasoline was a. a lot of motorist time wasted waiting in long lines at gas stations. b. a fairer distribution of gasoline. c. an efficient distribution of gasoline. d. b and c.
a
149. If the farmer and the beekeeper negotiate an arrangement whereby the farmer pays the beekeeper for putting bees in his orchard, a. the externality is internalized. b. the beekeeper now benefits from a positive externality c. the externality has switched from the beekeeper to the farmer. d. the farmer now faces a negative externality. e. All of the above.
a
155. As a result, a. too much of the good is being produced. b. too little of the good is being produced. c. the quantity supplied is less than the quantity demanded. d. supply has decreased.
a
159. Free markets ration goods with a. prices b. long lines c. ration coupons d. discrimination
a
167. Suppose the Surgeon General releases the results of a study which reveals that chocolate actually makes you lose weight. As a result, the demand for chocolate __________, the equilibrium price ________, the equilibrium quantity _________, and producer surplus ________. a. increases, increases, increases, increases b. increases, increases, increases, decreases c. increases, increases, decreases, decreases d. decreases, increases, decreases, decreases e. decreases, decreases, decreases, increases
a
169. In the figure above, the equilibrium (market clearing) price is a. P1 b. P2 c. P3 d. None of the above.
a
177. If there is a positive externality, in the graph above the supply curve representing the true social cost is ____, if there is a negative externality, the supply curve representing the true social cost is _____. a. A, B b. B, A c. A in either case. d. B in either case.
a
179. If property rights are clearly-defined and well-enforced, a. the possibility of trade means that all costs and benefits will be taken into account, so there will be no externalities. b. the possibility of trade means that only positive externalities will occur. c. there will still be some externalities, because property rights have only to do with ownership. d. the free rider problem may still prevent mutually beneficial trades from taking place.
a
187. In the case of a negative externality, which of the following is true? a. The person creating the externality does not bear all the costs, so too much of the good is produced. b. The person creating the externality does not bear all the costs, so too little of the good is produced. c. The person creating the externality does not capture all the benefits, so too little of the good is produced. d. The person creating the externality does not capture all the benefits, so too much of the good is produced.
a
192. People tend to "internalize externalities" when a. responsibility for the consequences of actions is more clearly assigned to the actors. b. spillover costs and benefits become more common and widespread. c. they calculate more carefully their own marginal costs and marginal benefits d. they feel less empathy for others.
a
194. Lighting your house with oil lamps instead of electricity may be efficient a. if the cost of lighting with oil lamps is less than the cost of lighting with electric lamps b. if the quality of light from oil lamps is less than the quality of light from electricity c. if oil lamp technology improves to the point that oil lamps produce as much light as electric lamps d. only when electricity is not available e. under no conceivable circumstances
a
198. If you are searching for a new pair of skis, it makes sense to keep looking as long as a. the shopping time matters less than what you may gain in a lower cost of skis. b. you haven't found the lowest price available. c. there are stores left that you haven't checked. d. you face opportunity costs. e. all of the above.
a
102. As a result, a. total surplus rises. b. total surplus falls. c. total surplus remains the same. d. there is not enough information to say.
b
103. If a new technology is developed that lowers the cost of making sun glasses a. consumer surplus will fall. b. consumer surplus will rise. c. consumer surplus will be unaffected, because supply changes, not demand. d. consumer surplus will only increase if demand increases, too.
b
106. Externalities (such as pollution) occur because a. people are selfish. b. property rights have not been clearly defined. c. companies are primarily interested in profits. d. the marginal benefits are less than the marginal costs.
b
109. Because pollution creates a negative externality, a. social welfare will be maximized when all pollution is eliminated. b. social welfare can be increased by eliminating some, but not all, pollution. c. pollution should be reduced by at least 10%. d. All of the above.
b
119. If quantity supplied rises from 10 to 20 when price increases from $2 to $6, supply is a. elastic. b. inelastic. c. steady. d. downward sloping. e. unit elastic.
b
126. If the supply curve including social cost is A and the supply curve reflecting private cost alone is S, then there must be a. a negative externality. b. a positive externality. c. a shortage. d. a surplus.
b
127. As a result a. too much of the good is being produced. b. too little of the good is being produced. c. quantity demanded is greater than quantity supplied. d. quantity supplied is greater than quantity demanded.
b
130. Suppose supply decreases (the curve SHIFTS) while demand stays the same. What happens to consumer surplus? (Draw the curves!) a. It increases. b. It decreases. c. It stays the same, since demand hasn't changed. d. There is not enough information to say.
b
131. What is the most likely effect of agricultural price supports, which guarantee a minimum price for such products as peanuts? a. They lead to shortages. b. They lead to surpluses. c. They reduce the demand for agricultural products. d. They increase the supply of agricultural products.
b
136. To economists, prices are a. the outcome of a haphazard process. b. the result of the millions of business and consumer decisions. c. the responsibility of government planners. d. not to be relied on as a method of allocating society's scarce resources. e. usually distorted by collusion between firms.
b
139. Suppose there is an early freeze in California that ruins the lemon crop. What happens to consumer surplus in the market for lemons? (Draw the graph!) a. It increases. b. It decreases. c. It is not affected, because this is a change in supply. d. It increases very briefly then decreases.
b
153. Air pollution creates a negative externality. Therefore, a. social welfare will be maximized when all pollution is eliminated. b. social welfare will be maximized when some, but not necessarily all, pollution is eliminated. c. governments should encourage firms to reduce pollution by at least 10%. d. polluting firms should be carefully regulated. e. All of the above.
b
157. In which panel above will there be a shortage of CD's? (Remember, this is a price ceiling) a. panel a b. panel b c. both panel a and panel b d. neither one
b
158. In which panel will the price ceiling have an effect? a. panel a b. panel b c. both panel a and panel b d. neither one
b
166. A seller will be willing to sell a product only if a. the price received is less than the cost of production. b. the price received is at least as great as the cost of production. c. the price received is equal to the cost of production. d. There is no general rule about willingness to sell.
b
168. Other things equal, if the price of a product falls, consumer surplus ______. a. decreases b. increases c. is unaffected d. depends on the supply elasticity
b
170. At the market clearing price, total consumer surplus is measured by the area a. A b. A+B+C c. A+B+C+D+E+F d. A+B+D+F+G e. D+E+F
b
172. At the market clearing price, total surplus equals a. A+B+D+F b. A+B+C+D+E+F c. A+B+C+D+E+F+G+H d. D+E+F+G+H e. D+E+F
b
175. When externalities exist, buyers and sellers a. neglect the external effects of their actions on others, so the efficient quantity is produced. b. neglect the external effects of their actions on others, so the efficient quantity is not produced. c. do not neglect the effect of their actions on others, because property rights allow trade. d. are both free riders.
b
178. When there is a negative externality a. too little of the good is produced b. too much of the good is produced c. none of the good is produced d. the efficient amount is produced, but some external people pay the costs.
b
182. You value your handkerchief at $5; your friend values it at $15, and you agree to sell it for $12. The gains from trade are a. $12 b. $10 c. $7 d. $3
b
184. A free-rider problem exists when a. senior citizens get discounts on their airline tickets. b. it is too costly to make everyone who enjoys a good pay for it. c. property rights are well defined and enforced. d. none of the above.
b
189. How does rent control, which limits the amount of rent that apartment owners can charge their tenants, affect property rights? a. It transfers some property rights from tenant to owner. b. It transfers some property rights from owner to tenant. c. It does not change property rights, since the owner continues to own the apartment. d. It gives the tenant full property rights to the apartment.
b
195. If only two products are made, umbrellas and fish tanks, a country can develop a comparative advantage in fish tanks a. if the price of fish tanks increases b. by becoming very inefficient relative to their trading partner at producing umbrellas c. if their trading partner becomes very inefficient relative to them at producing umbrellas d. if they undertake an investment in labor training e. none of the above
b
197. If I value your sweater at $25 and you value it at $10, then a. it makes sense to give me the sweater only if I pay you at least $25. b. the gains from trade will be $15. c. the gains from trade will depend on the price we agree on. d. no trade is possible seeing that I have no comparative advantage e. none of the above.
b
200. A new style of snowmobile that requires more fuel per mile becomes more efficient relative to traditional snowmobiles as a. the demand for snowmobile travel increases b. the price of fuel falls c. the price of snowmobiles falls d. more snow falls e. none of the above
b
201. Positive externalities a. occur when people don't take into account the costs they impose on others b. occur when people don't take into account the benefits they create for others c. are most common in examples of "free riding" d. none of the above e. a. and c.
b
202. With a negative externality, you end up getting a. too little of the product produced b. too much of the product produced c. the right amount produced, but not all of the benefits taken into account d. the right amount produced, but not all of the costs taken into account e. improper attention paid to property rights.
b
204. An important difference between police protection and office supplies that explains why one is generally provided by the government and the other by private firms is that a. police protection is a necessity while office supplies are not b. office supplies can be easily withheld from those who won't pay while police protection cannot be c. the government could not provide office supplies efficiently d. police forces are a powerful political lobby e. government traditionally provide police forces but not office supplies
b
208. The best explanation for why fewer elephants are poached where native populations have been given property rights to the elephants is that a. the natives have heard the messages of western environmentalists and become environmentalists themselves b. the natives now bear the cost when poaching occurs c. the international ban on ivory has made poaching less worthwhile d. the owning tribe gets to know and like the elephants. e. killing any elephants will now make no economic sense
b
108. We say that there is an externality when a. supply is greater than demand. b. demand is greater than supply. c. the cost or benefit of an action is imposed on someone without their consent. d. people are bearing costs. e. external parties provide the inputs.
c
111. A tax on buyers a. decreases the quantity supplied, but not the quantity demanded. b. decreases the quantity demanded, but not the quantity supplied. c. decreases both the quantity demanded and quantity supplied, unless one or the other is perfectly inelastic. d. increases the price that sellers receive.
c
117. Pollution is a problem that arises principally because a. firms are careless and like to cut corners. b. most companies don't care about the environment. c. the ownership of certain things is not well-defined. d. many people enjoy polluting.
c
118. If Rickey values his book at $5 and Fred values it at $25, and, after bargaining, they agree on a price of $24, then a. The gains from trade are $1. b. The gains from trade are $19. c. The gains from trade are $20. d. The gains from trade are $44 ($25-$5 + $24). e. Rickey gains from the trade, but Fred doesn't.
c
120. If a new technology lowers the cost of growing wheat, we would expect (Draw the curves) a. both consumer and producer surplus to decrease. b. consumer surplus to decrease and producer surplus to increase. c. both consumer and producer surplus to increase. d. price to fall, but consumer and producer surplus to be unchanged.
c
122. What area(s) show(s) total gains from trade at the equilibrium price? a. A+B+C+D+E+F+G+H b. A+B+C+D c. B+C d. B+C+D+E
c
123. Consumer surplus is equal to area(s) a. B+C+D+E b. B+C c. B d. C
c
125. If Cartland sells a rifle for $125 and his producer surplus is $75, his cost must have been a. $125. b. $75 c. $50 d. $25 e. He must have stolen the rifle.
c
137. According to the economic way of thinking, the price that results in quantity supplied being equal to quantity demanded is the best price because a. it results in no shortage. b. it results in no surplus. c. it maximizes the combined welfare of buyers and sellers. d. it minimizes the amount spent by buyers. e. it maximizes the profit of sellers.
c
138. Caitlin would be willing to pay $50 to see Les Miserables, but buys a ticket for only $30. Caitlin values the performance at and her consumer surplus is a. $30, $50 b. $50, $30 c. $50, $20 d. $30, $20
c
141. The cost of producing chocolate decreases. As a result, the equilibrium market price of chocolate , the equilibrium quantity of chocolate purchased , and consumer surplus . (Draw the graph!) a. decreases, decreases, decreases b. decreases, decreases, increases c. decreases, increases, increases d. increases, increases, increases e. increases, decreases, decreases
c
144. Private contracts between parties with well-defined property rights typically a. lead to positive externalities. b. lead to negative externalities. c. solve some inefficiencies associated with externalities. d. are impossible to enforce. e. lead to market outcomes in which the public interest is sacrificed for personal gain.
c
146. Demand for a "necessity" is likely to be ______, while demand for a "luxury" is likely to be _____. a. elastic, elastic. b. elastic, inelastic. c. inelastic, either elastic or inelastic. d. elastic, either inelastic or elastic.
c
148. To produce honey, bee keepers place hives of bees in orchards and crop fields. As bees gather nectar, they pollinate the orchards and fields, increasing the yields of fruit and grain. This arrangement results in a. a positive externality that benefits the beekeeper. b. a negative externality that penalizes the beekeeper. c. a positive externality that benefits the farmer. d. a negative externality for which the farmer should be compensated. e. no externalities, since the beekeeper loses nothing.
c
150. Automobile emissions create negative externalities. To deal with this, the government might a. increase the speed limit. b. reduce funding to public transportation c. impose a gasoline tax. d. All of the above. e. (a) and (bi) only
c
152. Hikers frequently claim that livestock grazing in wilderness areas reduces the satisfaction of their hikes. An explanation would be that a. many hikers don't eat beef. b. hikers prefer wild animals. c. grazing cows excrete externalities on the trail that make hiking less pleasant. d. ranchers resist the recreational use of public lands. e. cattle should not be allowed to graze on public property.
c
154. In the market described by the graph above, there is a. a shortage. b. a surplus. c. a negative externality. d. a positive externality.
c
160. An economist's view of the minimum wage would be that a. it is an efficient and equitable way of helping the poor b. it is inefficient, but the best way to solve a serious social problem c. it is an inefficient way to help the poor d. it is an efficient way to allocate labor, but not to help the poor.
c
161. The government is considering taxing popcorn. Which of the following is the most accurate statement about who will bear the burden of a tax? a. The burden of the tax will always be shared exactly evenly between buyers and sellers. b. The burden of the tax will never be shared equally between buyers and sellers. c. Rarely will the burden of the tax be shared equally; in most cases one or the other pays more of the tax. d. The burden of the tax depends on whether the government applies it to sellers or to buyers.
c
162. If you are willing to pay $500 for a new suit, and are able to buy it for only $350, you value the suit at _______ and your consumer surplus is _______. a. $500, $350 b. $350, $500 c. $500, $150 d. $350, $150
c
174. Countries usually impose restrictions on foreign trade to protect a. foreign producers. b. foreign consumers. c. domestic producers. d. domestic consumers. e. both c and d.
c
180. How can it be that water, which is a necessity of life, is so cheap while diamonds. which are a luxury, are so expensive? a. The marginal benefit of diamonds must be low. b. The marginal benefit of water must be high. c. The marginal value of water is low even though the total value is high. d. The total value of diamonds must be higher than the total value of water.
c
181. What area shows total gains from trade at the point where demand and supply intersect? a. triangle EBC. b. triangle EBA. c. triangle CBA d. rectangle EBFC.
c
185. Which of the following results in the production of a positive externality? a. Your neighbor has a loud party that lasts until the early hours of the morning. b. A homeowner does not maintain his property. c. A person buys land to preserve open space that is enjoyed by all passers by. d. All of the above.
c
188. In the case of a positive externality, which of the following is true? a. The person creating the externality does not bear all the costs, so too much of the good is produced. b. The person creating the externality does not bear all the costs, so too little of the good is produced. c. The person creating the externality does not capture all the benefits, so too little of the good is produced. d. The person creating the externality does not capture all the benefits, so too much of the good is produced.
c
196. Driving to work (which takes ten minutes) is more efficient than riding a bike (which takes one hour) a. only if fuel costs are less than $1.00 per gallon b. if exercise is valued more than a fast commute c. if the opportunity cost of time is high enough d. never, since scarce economic resources are wasted by driving e. if you are wealthy enough
c
205. Economic theory would explain that regulated firms often benefit from the regulation because: a. the regulated firms are able to manipulate public officials into doing what they want b. regulation is very complicated and mistakes are sometimes made c. politicians worry about pleasing those who care the most and pay the closest attention d. it is nearly impossible to know what public interest requires in the absence of market information e. politicians do not have to worry about being voted out of office since most incumbents are re-elected
c
207. If after many arguments I agree not to play loud music after 10 p.m. in return for your washing my car each week a. my music playing has created a negative externality b. your car washing creates a positive externality c. there are no longer any externalities d. the positive and negative externalities balance exactly e. only a. and b.
c
107. If a bad frost leads to a 75% fall in the orange crop, we would expect a. an orange shortage. b. an excess demand for oranges. c. that oranges would become a scarce good. d. the price of oranges to rise. e. All of the above.
d
124. Producer surplus is equal to area(s) a. H+A+B+C b. B+C c. B d. C
d
129. You are considering whether to take one last ski run before going home. You paid $30 for your lift ticket (which gives you the right to ski all day), and have taken nine runs. It is only efficient for you to take a tenth run if a. your marginal benefit is greater than $30. b. your marginal benefit is greater than $3. c. your total benefit will end up greater than $30. d. your marginal benefit is greater than 0. e. your total benefit ends up greater than your total costs.
d
133. Which of the following is most likely to increase producer surplus in the market for grapes? (Draw the curves!) a. A typhoon during grape harvest. b. News that eating grapes causes cancer. c. A fall in the demand for raisins. d. An increase in the demand for wine.
d
134. If a blight kills off three-quarters of the turkey population before Thanksgiving, we would see a. a turkey shortage. b. the quantity of turkeys demanded to exceed the quantity supplied. c. turkeys to become a scarce good. d. a higher price for turkeys. e. All of the above.
d
140. If labor in Mexico is less productive than labor in the U.S. in all industries, a. neither nation can benefit from trade. b. Mexico can benefit from trade but the U.S. cannot. c. Mexico will not have a comparative advantage in any good. d. both nations can benefit by specializing in goods for which they have a comparative advantage.
d
142. If Gary sells a shirt for $40, and his producer surplus from the sale is $23, his cost must have been a. $63. b. $40. c. $23. d. $17.
d
143. An externality arises when a. the government is unable to intervene in the operation of a market. b. markets are not able to reach equilibrium. c. a firm sells its product in a foreign market. d. one person's actions affect the well-being of others without their consent. e. someone ends up paying more for a good than they want.
d
147. Which of the following is likely to be associated with positive externalities? (i) Child immunizations (insuring that the general population is vaccinated against communicable diseases.) (ii) The research and development of a new drug. (iii) The release of a great new movie. a. all of the above. b. (ii) and (iii) only. c. (i) and (iii) only. d. (i) and (ii) only.
d
151. Jane has a tree in her yard whose roots are beginning to break the plumbing lines to Dick's house (Dick and Jane are neighbors.) Suppose that the benefit of having the tree is worth $800 to Jane and that Dick is willing to pay up to $1000 to protect his plumbing. A possible private solution to this problem is that a. Jane pays $900 towards Dick's plumbing repair. b. Jane pays $1100 towards Dick's plumbing repair. c. Dick pays Jane $1100 to destroy of the tree. d. Dick pays Jane $900 to destroy the tree. e. Any of the above.
d
156. In which panel above will there be a surplus of CD's? (Remember, this is a price ceiling) a. panel a b. panel b c. both panel a and panel b d. neither one
d
163. If quantity demanded falls by 100,000 when price rises by 2 cents, we know that a. demand is elastic. b. demand is inelastic. c. demand is unit elastic. d. there is not enough information to calculate elasticity.
d
164. You get lost in the desert, and become so thirsty you decide you would pay $50 for a quart of cold Gatorade. You stumble on a grocery store, buy your quart of Gatorade, and emerge with a consumer surplus of $47.25. How much did you pay for the Gatorade? a. $50 b. $47.25 c. $97.25 d. $2.75 e. impossible to determine from the information given
d
165. A demand curve represents a. the willingness to pay of all buyers in the market b. the value each buyer in the market places on the good c. the highest price buyers are willing to pay for each quantity d. All of the above
d
173. When the United States engages in trade with China a. China reaps economic benefits and the U.S. loses. b. the U.S. reaps economic benefits and China loses. c. it is an equal tradeoff, so neither side wins or loses. d. both China and the U.S. reap economic benefits.
d
176. If you maintain your yard well, it creates a ________ externality because ______________. a. positive, it increases the sales price of your home. b. positive, it increases pressure on neighbors to do the same. c. negative, it makes neighbors feel that their homes are attractive, too. d. positive, it increases the value of adjacent properties, and gives pleasure to passer-by's. e. Both a and d.
d
186. A law that requires water pollution to be completely eliminated a. makes good economic sense because pollution creates negative externalities. b. makes good economic sense because pollution is costly to people and should therefore be eliminated. c. does not make good economic sense because pollution is a necessary for economic growth. d. does not make good economic sense unless the marginal cost of eliminating pollution is less than the marginal benefit.
d
190. Because information is costly to collect a. some potentially beneficial trades may not occur. b. people have the incentive to gather information and sell it. c. people are willing to pay for information. d. All of the above.
d
191. New airplanes that consume less fuel per passenger-mile become less efficient for commercial airlines to purchase and use as a. average flight distances lengthen. b. fewer non-stop flights are scheduled. c. the demand for airline travel increases. d. fuel prices fall.
d
199. Which of the following actions is most likely to create an externality? a. A new iphone produces a clearer picture than ever seen before b. Pepsi Cola improves its formula to give more enjoyment to its drinkers c. A book store orders a new book because patrons are requesting it d. A family decides to vacation in Yellowstone Park this summer e. All of the above equally
d
105. Our principle measure of economic welfare is a. price. b. quantity. c. GDP. d. inflation. e. surplus.
e
114. Suppose a new fee will be charged to developers of open land within city limits. We can expect this to a. decrease the demand for open land in city limits. b. increase the demand for open land outside city limits. c. increase the cost of housing within city limits. d. decrease the price farmers within city limits can sell their land for. e. All of the above
e
116. An airline is considering adding a daily flight from Greenville to Denver. Assuming that it has a plane that would otherwise sit on the runway, which of the following costs should be counted in deciding whether adding the flight is efficient? a. The costs of pilots and flight attendants who must fly the new route. b. The payments on the loans it took out to buy the plane. c. The cost of the jet fuel used between Greenville and Denver. d. All of the above. e. Only A and C.
e
171. At the market clearing price, total producer surplus is measured by the area a. F b. F+G c. A+C+D+E+F d. D+E+F+G+H e. D+E+F
e
203. Fishing to the point of the extinction of the species occurs primarily because a. fishermen care only about current benefits and not about the future b. the technology of fishing makes it more efficient to catch huge numbers of fish at one time c. consumers eat fish without considering the marginal costs d. all of the above e. none of the above
e
206. In the provision of which of the following will there not be a free-rider problem? a. national security b. police protection c. fire departments d. charity e. none of the above
e