Why does the government provide public goods?
a) Private markets would not produce the efficient quantity of the good.
b) Private markets would not produce any of the good.
c) Private markets produce public goods less efficiently than the government.
d) Private markets would charge too high a price for the good.
Ans: a) Private markets would not produce the efficient quantity of the good.
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According to one research study focusing on Indonesia, actions by nongovernmental organizations are ___________ than importing countries' threats to raise tariffs.
a. less effective in raising wages and limiting declines in employment b. more effective in raising wages and limiting declines in employment c. less effective in raising wages but more effective in limiting declines in employment d. more effective in raising wages but less effective in limiting declines in employment
Refer to the scenario above. Which of the following will happen in equilibrium if Harry is known to be trustworthy?
A) Tom will trust Harry and Harry will cooperate. B) Tom will trust Harry and Harry will defect. C) Neither of them will make any money. D) Only Harry will make money.