The free rider problem occurs

Assignment Help Business Economics
Reference no: EM131173849

The free rider problem occurs because: a. consumption is rivalrous, so the consumption of a product by one individual diminishes the amount available for others. b. individuals are not required to pay for those goods which do not yield any utility to them. c. it is easy to exclude others from consuming a good. d. external costs are imposed on others not directly involved in the transaction. e. exclusion is costly or impossible, so a consumer or producer can use a good without having to pay for it.

Reference no: EM131173849

Questions Cloud

Calculate the amount of the government deficit : Suppose government purchases amount is $3.5 trillion, transfer payments amount is $0.5 trillion, net interest payments are $0.25 trillion and tax revenue is valued at $2 trillion. calculate the amount of the government deficit; calculate the primary ..
Draw production possibilities curve for the pleasure : Draw a production possibilities curve for the pleasure you get between hanging with friends and from doing your Economics problem set. Are these activities complementary or are they substitutes? Does it matter which friend you are studying with? How ..
Suppose that inflation in the preceding period : Given Phillips curve ?π = - 0.3 (U - 6) + ρ, suppose that inflation in the preceding period was 3 percent, unemployment is 7 percent, and there is no price shock. The current inflation rate is?
One reason that some whales were hunted close to extinction : One reason that some whales were hunted close to extinction is that no one can claim ownership of a whale until it is killed. If property rights to the whale population were established
The free rider problem occurs : The free rider problem occurs because: consumption is rivalrous, so the consumption of a product by one individual diminishes the amount available for others. individuals are not required to pay for those goods which do not yield any utility to them.
When the net annual cash flows are equal : When the net annual cash flows are EQUAL, the cash payback period is computed by dividing the cost of the capital investment by the: If a payback period for a project is greater than its exected useful life, the
Dual mandate of price stability and maximum employment : How is inflation targeting consistent with the "dual mandate" of price stability and maximum employment?
What is meant by supply-side economics : What is meant by "supply-side economics"? Why must the total value of saving in an economy equal the total value of investment? Why might a supply shock lead to stagflation?
Housing prices causes investment to decrease sharply : Consider the 2008-2010 recession. Use the IS-LM model to analyze the following. Suppose that the decrease in housing prices causes investment to decrease sharply, How are GDP and interest rates affected, ii) Suppose both fiscal and monetary policies ..

Reviews

Write a Review

 

Business Economics Questions & Answers

  1 in which market model would there be a unique product

1. in which market model would there be a unique product for which there are no close substitutes?a. monopolistic

  What is the required reserve ratio

if the required reserve ratio is 10 percent, what is the monentary multiplier? if the monetary multiplier is 4, what is the required reserve ratio?

  What happens to the quantity of the heating oil demanded

Suppose the price elasticity of demand for heating oil is 0.2. If the price of heating oil rises from $1.80 to $2.20 per gallon, what happens to the quantity of the heating oil demanded? use the mid-point method.

  Costs and benefits of fdi inflows for a host country

The once mighty General Motors, unable to survive by meeting the needs of customers turned to the taxpayers for a bailout in the U.S. In Europe its Opel subsidiary required similar life support from the German government. What are the costs and benef..

  How do you think the us can support a cheaper dollar

When looking at a cheaper dollar, you will find that this will affect our economy. We are able to export more goods and services given the cheaper dollar. How do you think the US can support a cheaper dollar?

  Based on marginal revenue/marginal cost analysis

Based on marginal revenue/marginal cost analysis, describe how output and price are determined in monopolistically competitive markets. You should discuss what firms try to maximize (or minimize), what rule they need to follow to do this, and how thi..

  Develop a statistical software package

You are a pricing analyst for QuantCrunch Corporation, a company that recently spent $15,000 to develop a statistical software package. To date, you only have one client. A recent internal study revealed that this client's demand for your software is..

  Net foreign direct investment has been positive number

Net foreign direct investment has been a (significant) positive number for the US since the mid 1980s. That represents more investment flowing into the US than out. Given that, one would normally conclude that the flow of net interest payments would ..

  Increase in demand on the price and quantity of yellow corn

What is the immediate effect of the increase in demand on the price and quantity of yellow corn? Yellow corn and white corn (the key ingredient in corn tortillas) are substitutes in production. As a result of the changes in the market for yellow corn..

  Differentiation strategies are meaningful and worthwhile

All brand differentiation strategies are meaningful and worthwhile. Which of the following statements is true about positioning strategies?

  As result of the recession

As a result of the recession that began in 2007 and continued into 2009, the unemployment rate rose to as high as 10 percent. By the time of the congressional elections of 2010, the economic recovery was under way, but the unemployment rate was still..

  Provide one quote and its context for both a positive and

Locate recent articles in the New York Times or Wall Street Journal in which economists are quoted using positive and normative statements.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd