Which of the following best illustrates the free rider problem?
A) For every purchase of a $100 season pass, you are entitled to free entry to an amusement park for the entire summer.
B) If your neighbors redo the landscapes in their yards, it is likely that the value of your house will increase.
C) Since no one owns rhinos and rhinos are valued for their horns, rhinos can be hunted to extinction.
D) Homeowners in a small neighborhood decide that security lighting is good for the neighborhood. One homeowner installs the lighting and asks you to contribute toward the cost, but you choose not to contribute.
D
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The difference between GNP and GDP is
A) GNP includes income received from abroad and excludes income paid abroad. B) GNP excludes income received from abroad and includes income paid abroad. C) GNP includes exports and imports. D) GNP excludes exports and imports. E) GNP includes capital flows received from abroad and excludes capital flows to foreign countries.
As the quantity of labor increases, the marginal product of labor
A) is constant. B) increases. C) decreases. D) may either increase or decrease.