Which of the Following Is an Example of Government Intervention

question 199

Multiple Choice

Which of the following is an example of government intervention to solve a Tragedy of the Commons problem?

• A)antipoverty programs
• B)national defense
• C)toll charges on congested roads
• D)agricultural subsidies

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Definitions:

Marginal Revenue Product

The additional revenue generated by one more unit of input, such as labor or capital, in the production process.

Marginal Product

The increase in output that arises from an additional unit of input, holding all other inputs constant.

Profit-Maximizing Firm

A business entity's objective of adjusting production and sales to achieve the highest possible profit levels.

Wage Rate

The amount of money a worker is paid per unit of time, such as an hour or a month.