Four stores have a problem with theft and security is a public good. Let S stand for the number of person-hours of security patrols per week. The marginal benefit of security patrols to each of the stores is given by the formula MB = 200/(1 + S). Patrols cost $25 per hour. Which of the following gives the marginal social benefit function?
A. MSB = 50/(1 + S)
B. MSB = 4 + [200/(1 + S)]
C. MSB = 800/(1 + S)
D. MSB = [200/(1 + S)] - 4
C. MSB = 800/(1 + S)
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Refer to the table above. If the price level is 120, then the aggregate quantity demanded is ________ than the aggregate quantity supplied and the price level ________
A) greater; rises B) greater; falls C) less; rises D) less; falls E) less; might fall, rise or not change depending on whether real GDP is more than, less than, or equal to potential GDP.
What is meant by the phrase "economic integration?"
What will be an ideal response?
The aggregate demand curve is negatively sloped because a lower price level
A) reduces the real money supply. B) increases the real money supply. C) reduces aggregate income. D) increases aggregate income.
In the long run, persistent inflation in the United States is caused by
A) leftward shifts in both the long-run aggregate supply curve and in the aggregate demand curve. B) rightward shifts in the long-run aggregate supply curve and the leftward shift of the aggregate demand curve. C) a faster rightward shift of the aggregate demand curve than the rightward shift of the long-run aggregate supply curve. D) leftward shifts in the aggregate demand curve while the position of the long-run supply curve is unchanged.