The free-rider problem is the absence of an incentive for
A) firms to produce public goods.
B) people to use common resources.
C) people to pay for what they consume.
D) people to vote.
C
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The Great Recession of 2008-09 was an ideal case for fiscal policy because:
A. a healthy financial sector improves the timeliness of expansionary fiscal policy. B. targeting and timeliness are less important when a recession is the result of the bursting of an asset bubble. C. the most-easy-to-target sectors were those that were the most affected by unemployment. D. targeting and timeliness are less important when a recession is very severe and lasts a long time.
An article in the textbook suggests that one method to correct the higher education inefficiency is to
a. provide free higher education to all Americans. b. have college students sell equity in themselves. c. reduce interest rates on student loans. d. increase the number of colleges and universities in the United States.