The incentive for people to avoid paying for a resource when the benefits they obtain from the resource are unaffected by whether they pay is known as ___________________.

Medical research helps to develop better treatments for neuromuscular disease. Medical researchers are constantly in search of funds. Many in the public, however, are unwilling to contribute money toward neuromuscular disease research until a member of their own family suffers from a neuromuscular ailment. If left strictly to the private market, it is likely that there will be: a. an

overallocation of resources to neuromuscular disease research, relative to the efficient level. b. an underallocation of resources to neuromuscular disease research, relative to the efficient level. c. an efficient quantity of resources devoted to neuromuscular disease research. d. an efficient quantity of resources devoted to neuromuscular disease research.

Which of the following is correct? When actual leakages exceeds expected injections, then:

a. Inventories rise, unemployment tends to rise, and prices tend to fall. b. Inventories rise, unemployment tends to fall, and prices tend to rise. c. Inventories fall, unemployment tends to rise, and prices tend to rise. d. It is impossible for these two to be unequal. e. You are mixing apples and oranges. These two macroeconomic variables should not be compared.