The best example of fiscal policy is ___.

In the figure above, which of the following represents a money flow?

A) Goods purchased B) Interest C) Capital D) Services sold E) Goods supplied

When does the free-rider problem arise?

A) when someone who benefits from a good does not have to contribute to paying for it B) when a firm does not have to advertise, because its customers recommend the product to their friends C) when policymakers ignore opportunity costs in making decisions D) when production of a good generates pollution