A free lunch (the absence of a tradeoff) when the production of a good is increased is possible for the entire economy only if
A) resources are used inefficiently.
B) there is a movement along the PPF.
C) prices are decreased.
D) prices are increased.
E) less of some product is produced.
A
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According to the ________, as long as property rights are clearly defined, two agents can always bargain to reach the efficient outcome
A) Coase theorem B) Ricardian theory on rent C) revenue-equivalence theorem D) envelope theorem
The term "free rider"
a. refers to the reduction of incentives for an individual to provide effort. b. describes the privatization of goods and property. c. refers to a situation in which resources are overused and quickly exhausted. d. describes people who did not pay for their ship travel to the colonial US because their relatives would pay their fares once they arrived.