When good X is produced, some people benefit. A free-rider problem arises when
a. the number of people who benefit is small and it is impossible to prevent anyone from benefiting.
b. the number of beneficiaries is small and it is possible to prevent some people from benefiting.
c. the number of beneficiaries is large and it is impossible to prevent anyone from benefiting.
d. the number of beneficiaries is large and it is possible to prevent some people from benefiting.
c
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If a firm uses only capital and labor as inputs, then what should the firm do at a given rate of production if the marginal physical product of labor per last dollar spent is higher than the marginal physical product of capital per last dollar spent?
A) The firm should increase both the quantity of capital and the quantity of labor. B) The firm should decrease both the quantity of capital and the quantity of labor. C) The firm should increase the quantity of capital and reduce the quantity of labor. D) The firm should decrease the quantity of capital and increase the quantity of labor.
Individuals are forced to make choices because
a. wants are unlimited. b. the supply of resources is infinite. c. wants are unlimited and resources are scarce. d. resources exceed wants.