The problem of "free riders" arises in a society when goods
A) can't be provided exclusively to the people who pay for them.
B) cease to be scarce.
C) produced by government are provided to everyone.
D) supplied by the private sector are paid for from tax revenue.
E) wanted by everyone are priced too low.
A
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Apples are a normal good, so if the price of an apple increases from 50¢ to 60¢, the quantity of apples demanded decrease because of
A) the substitution effect only. B) the income effect only. C) a change in income. D) the substitution and income effects.
Given the information in the table above, if it is ascertained that Foreign uses prison-slave labor to produce its exports, then home should
A) export cloth. B) export widgets. C) export both and import nothing. D) export and import nothing. E) export widgets and import cloth.