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 - 2S. Patrols cost $20 per hour. If each store provided security independently, how much would each store provide?
A. 90 person-hours of patrols per week
B. 100 person-hours of patrols per week
C. 92.5 person-hours of patrols per week
D. 97.5 person-hours of patrols per week
A. 90 person-hours of patrols per week
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The figure above shows a tax imposed on a good with an external cost. The area of the rectangle abcd equals
A) the MSB. B) the total tax revenue collected by the government. C) the amount of pollution tax per ton. D) the MC. E) the deadweight loss.
How is the impact of contractionary monetary policy different in an open economy than in a closed economy?
What will be an ideal response?
A decline in the money ________ shifts the LM curve to the ________, causing the interest rate to rise and output to fall, everything else held constant
A) demand; right B) demand; left C) supply; right D) supply; left
Even though mass transit systems such as buses are available in most cities in the United States, many residents decide to drive to work in their own vehicles because
A) the opportunity cost of riding a bus is too high for them. B) there is no opportunity cost of them to drive. C) they are not aware of the opportunity cost of driving. D) they do not behave according to the economic way of thinking.