A collective-action problem is a situation in which:
A. people are often reluctant to voluntarily pay for goods and services that provide benefits for everyone, even for those who don't pay.
B. people are reluctant to voluntarily pay for goods and services because they believe their individual contribution will not make a difference.
C. a group of people stand to gain from an action that is not rational for any of the members to undertake individually.
D. a small group of individuals gains power that sways the decisions of society to their personal gain at the expense of the larger society.
C. a group of people stand to gain from an action that is not rational for any of the members to undertake individually.
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A price floor in an agricultural market is called
A) an agricultural floor. B) a farm support. C) a price support. D) a farm subsidy. E) a farm support price.
In 1973 and again in 1979, the Organization of Petroleum Exporting Countries (OPEC) raised the world price of crude oil and increased their revenue as well. Which of the following is a TRUE statement regarding these OPEC price hikes?
A) Their revenue increased because the demand for oil was income inelastic. B) Their revenue increased because the demand for oil was price inelastic. C) Their revenue would have increased regardless of income elasticity or price elasticity because oil is an imported product for most nations. D) Their revenue only increased because oil was already very expensive.