Historical note: Most of the failures (per year) of thrift institutions, such as savings and loan associations, occurred in

As income increases, consumption increases too, but not as rapidly. This is a statement of the:

A. Production function. B. Consumption function. C. Substitution effect. D. Income effect. E. Wealth effect.

Which of the following best illustrates the free-rider problem? a. A tollbooth is constructed at the entrance of a privately funded highway

b. Individuals contribute toward a national defense program by paying taxes to the government. c. Some homeowners in a mountain resort area refuse to contribute toward paving the area's only access road. d. You erect a locked gate around your swimming pool to keep out unsupervised children.