Which of the following is included in "compensation of employees" part of the income approach to measuring GDP? I. Wages and salaries. II. Pension fund contributions. III. Social Security contributions

A key assumption of the classical model is that

a. government intervention is important to get markets to clear b. prices adjust until quantity supplied equals quantity demanded c. markets never clear in the long run d. demand adjusts in order to meet supply e. prices remain constant and supply and demand adjust

According to the text, one of the ways to solve the public good problem is

A. finding ways of forcing people to pay for the good. B. not to provide the good at all. C. to allow private firms in free markets to provide the good for a fee. D. for the government to provide the good for free by using a compulsory tax.