What effect would a simplification of federal tax law have on the cost of hiring a tax accountant?
A) It would fall because tax accountants would have fewer valuable opportunities.
B) It would rise because tax accountants would have to raise their prices to maintain their incomes.
C) It would have no effect because only supply affects costs, not demand.
D) It would have very little effect because most of the costs of becoming an accountant are sunk costs.
Question 2
The free-rider problem exists for goods that are ________.
A) excludable
B) rival
C) free
D) non-excludable
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