The efficient quantity of a pure public good occurs when the marginal cost of producing that good equals the
A) marginal benefit to the median voter.
B) marginal benefit to each individual.
C) sum of all individual marginal benefits.
D) sum of all individual marginal benefits divided by the number of voters.
C
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When people look at what has just happened in the economy to conjecture what is about to happen, it is known as ______.
a. gradualism b. indexing c. adaptive expectations d. natural rate
When price is sufficient to cover average variable costs, firms suffering short-run losses will continue to operate rather than shut down.
Answer the following statement true (T) or false (F)
Over time, spending on ________ is "smoother" than spending on ________.
A. services; nondurable goods B. durable goods; service C. durable goods; services D. nondurable goods; durable goods
You agree to lend ________ to a friend for a year at an annual interest rate of 10%. At the end of the year your friend pays you $600 in interest.
A. $60 B. $660 C. $6,000 D. $6,600