1. A government decides to intervene in an agricultural commodity market in order to stabilize the incomes of the producers. it does this by:
A. Buying stock when output is low and selling stock when output is high
B. Buying stock when output is high and selling stock when output is low
C. Selling stock when output is low and buying stock when output is high
D. Selling stock when output is high and selling stock when output is low.
2. What are public goods? What is the free rider problem associated with public goods?
3. Common resources such as the oceans and the skies are similar to public goods because they are both:
A. Excludable and rival in consumption
B. Non-excludable and non-rival in consumption
C. Non-excludable in consumption
D. Non-rival in consumption
Send in your answers by Monday 21 January 2013 to profKMody@gmail.com
