Which of the following statements is not correct?
a. Medical research can be an example of a public good.
b. The private market will tend to undersupply public goods.
c. The free-rider problem occurs when a good is nonexcludable.
d. All goods provided by the government are public goods.
d
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If the growth rate of the quantity of money is 4 percent per year, potential GDP and real GDP grow at 3 percent per year, and velocity does not change, in the long run what is the inflation rate?
What will be an ideal response?
We distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve. In the long run
A) technology is fixed but it is not in the short run. B) the price level is constant but in the short run it fluctuates. C) the aggregate supply curve is horizontal while in the short run it is upward sloping. D) real GDP equals potential GDP.