The efficient quantity of a public good occurs when the marginal cost of providing that good equals the sum of the marginal benefits to all individuals
Indicate whether the statement is true or false
True . The demand for the public good is found by vertically summing so that we have the sum of the marginal benefits at each quantity.
You might also like to view...
Richard runs a pizza delivery restaurant. List the three basic types of decisions studied in economics and give an example from Richard's restaurant
What will be an ideal response?
Use the above figure. Which graph depicts a normal good?
A) A B) B C) C D) D
The Department of Commerce sums the payments made to resources to arrive at GDP in the form of wages, rents, interest, profits, indirect taxes, and depreciation. This method of deriving GDP is called the:
a. opportunity cost approach. b. income approach. c. expenditure approach. d. monetarist approach.
The size of the debt will begin to shrink if the federal government balances its budget.
Answer the following statement true (T) or false (F)