There is much world concern over the deteriorating condition of the Pyramids and other historical structures in Egypt. While people of all nations enjoy visiting these structures, there has been little financial support for preservation coming from within Egypt or from elsewhere. Economists would describe this as an example of
a. an externality.
b. a public good.
c. a free rider problem.
d. imperfect information.
c
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One of the problems with Lewis' concept of surplus labor is that
a. People who look like they are not working actually are achieving important development objectives. b. Productivity in subsistence agriculture is so low that all workers are constantly needed. c. Those no longer needed in agriculture have long ago left for the cities. d. Those whose labor is not needed at one time may be needed at other times. e. Surplus labor exists only in developed country agriculture.
When there are external economies of scale, an increase in the size of the market will
A) increase the number of firms and lower the price per unit. B) increase the number of firms and raise the price per unit. C) decrease the number of firms and raise the price per unit. D) decrease the number of firms and lower the price per unit. E) not affect the number of firms, but will lower the price per unit.