Why do markets tend to underproduce public goods?
Markets, left to themselves, tend to underproduce public goods for one reason. It is difficult or impossible to exclude persons from the good or service. If it were possible to exclude, then a price could be charged which might cover the cost of the good or service. Without a profit motive to acquire the good, markets don't do so.
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Holding all other influences constant, the quantity of labor supplied in a given time period depends
A) directly on the real wage rate so that a higher real wage increases the quantity of labor supplied. B) inversely on the real wage rate so that a higher real wage decreases the quantity of labor supplied. C) on the money wage rate not the real wage rate. D) directly on the quantity of labor demanded. E) inversely on the quantity of labor demanded.
Moneys primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization. This function of money is called
A) store of value. B) medium of exchange. C) standard of deferred payment. D) unit of account.