Does the benefits received principle work well for all public goods?
The benefits received principle means that the individuals receiving the benefits are those who pay for them. Although this principle may work for some private goods, it does not work well for public goods such as national defense and the judicial system. Because we collectively consume national defense, it is not possible to find out who benefits and by exactly how much.
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In order to analyze migration in the long run, it is appropriate to use:
a. the specificfactors model with free movement of labor across borders. b. the HeckscherOhlin model with free movement of labor across borders. c. the Ricardian model with no movement of labor across borders. d. the PPF modified for three goods, three factors of production (all fixed), and three nations.
Suppliers often reduce prices because they
a. have a shortage of products to sell b. have a surplus of products to sell c. want to decrease consumer demand d. want to reduce profits and go out of business