It is commonly argued that national defense is a public good. Nevertheless, the weapons used by the U.S. military are produced by private firms. We can conclude that
a. resources would be used more efficiently if the government produced the weapons.
b. resources would be used more efficiently if private firms provided national defense.
c. weapons are rival in consumption and excludable, but national defense is not rival in consumption and not excludable.
d. national defense is rival in consumption and excludable, but weapons are not rival in consumption and not excludable.
c
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Which of the following statements regarding U.S. economic growth is NOT correct?
A) Over the past 100 years, on the average real GDP per person grew 2 percent a year. B) The average annual growth rate of real GDP per person in the United States was rapid during World War II. C) In the 1930s, real GDP fell well below its trend. D) The growth rate of real GDP per person accelerated between 1973 to 1984.
A manufacturer of digital music players uses a proprietary file format that is not used by the other firms in the market
This action by the firm may be an example of using a ________ to reduce the number of firms in the market and to maintain a relatively inelastic demand for its products. A) natural monopoly B) positive externality C) subsidy D) barrier to entry