There are two people in an economy. Person A’s demand for a public good is Q = 10 - P and person B’s demand is Q = 20 - 2P. The highest total that A and B will be willing to pay for six units of the public good is
a. $3
b. $4
c. $7
d. $11
d. $11
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The market-clearing curve for substitutes is:
A. horizontal. B. downward-sloping. C. vertical. D. upward-sloping.
The current account balance is equal to
A. The trade balance times unilateral transfers. B. Imports minus exports. C. Exports minus imports. D. The trade balance plus unilateral transfers plus net investment income.
In what sense can it be said that money is a social invention? How does a barter system of trade compare to the invention of money?
What will be an ideal response?
Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to the monetarists, ________ can be caused when AD1 shifts to the left.
A. inflation B. an increase in money demand C. a recession D. stagflation