Refer to Figure 5-4.What is the economically efficient output level?

Gross private domestic investment consists of _____

a. spending by individual households on automobiles and durable goods b. spending by businesses on labor resources c. net additions to business inventories d. spending by government on welfare benefits e. spending by households on stocks and bonds

The prisoner's dilemma arises when people have an incentive to let others pay for the public good and then take advantage of those purchases made by others

a. True b. False Indicate whether the statement is true or false