Answer the following statement(s) true (T) or false (F)
1. Use of a common property is nonrivalrous.
2. A nonexcludable good, once produced, can be made available to others at no additional cost.
3. Private markets tend to undersupply nonrivalrous goods because of free riding.
4. Once it has been produced, the efficient price for a nonrivalrous good is zero.
5. An HBO broadcast over cable television is rival in consumption but non-excludable.
1. False
2. False
3. False
4. True
5. False
You might also like to view...
In the Cambridge approach, if k is .5, total output is $50 billion, and the money supply is $100 billion, the price level is
A) 0.5. B) 4.0. C) 3.0. D) 10.0.
Refer to the diagram. If society is currently producing the combination of bicycles and computers shown by point D, the production of 2 more units of bicycles:
A. cannot be achieved because resources are fully employed.
B. will cost 1 unit of computers.
C. will cost 2 units of computers.
D. will cause some resources to become unemployed.