"To find the economy's marginal social benefit curve for a public good, we sum the individual marginal benefit curves horizontally." True or false? Explain
What will be an ideal response?
The statement is false. To find the economy's marginal social benefit curve of a public good, we sum the individual marginal benefit curves vertically because we need to obtain the sum of what everyone together is willing to pay for each unit of a public good.
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The gravity model offers a logical explanation for the fact that
A) trade between Asia and the U.S. has grown faster than NAFTA trade. B) trade in services has grown faster than trade in goods. C) trade in manufactures has grown faster than in agricultural products. D) Intra-European Union trade exceeds international trade by the European Union. E) the U.S. trades more with Western Europe than it does with Canada.
For a competitive firm, the marginal revenue product is:
A. always positive and nears zero as quantity increases. B. always negative and nears zero as quantity increases. C. zero when profits are maximized. D. decreasing eventually as quantity increases.
In order for barter trades to occur, there must be a
a. singularity of interests. b. bargaining intermediary. c. double coincidence of wants. d. sufficient supply of cash.
Offering goods that are similar to competitors' products but more attractive in some ways is called:
A. product distinction. B. price-point pinning. C. product differentiation. D. deceptive advertising.