Web Sites Like Napster That Allow Free Downloading of Songs

question 61

True/False

Web sites like Napster that allow free downloading of songs and movies illustrate the "tragedy of the commons" because pursuit of self-interest only destroys societal interest.

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Definitions:

Milton Friedman

An American economist and Nobel Prize laureate known for his research in consumption analysis, monetary history and theory, and his advocacy of free-market capitalism.

Rational Expectations

The hypothesis that individuals form forecasts about the future based on all available information in an unbiased and consistent manner.

Self-Correction Mechanism

The market's ability to adjust back to equilibrium without intervention, often used in the context of economic cycles.

Supply-Side Economists

Economists who advocate for policies that increase production as the best way to foster economic growth, emphasizing the role of supply in driving economic outcomes.