Individuals making decisions about how much to purchase of a product with an external benefit base their decisions on which of the following?
A) the price and marginal private benefit
B) the economically efficient output
C) the price and the marginal social benefit
D) the size of the deadweight loss
A
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Market clearing price
A) refers to a movement along the demand curve. B) refers to a supply curve. C) exists at a the point at which quantity demanded equals quantity supplied. D) refers to a surplus.
Which of the following is the largest single source of federal government revenue?
a. payroll tax b. excise taxes c. personal income tax d. corporate income tax
In response to the “Great Depression 2.0,” the Obama administration responded with more tax cuts, increased federal spending, and aid to state and local governments.
Answer the following statement true (T) or false (F)
If a decrease in the price of movie tickets increases the total revenue of movie theaters, this is evidence that demand is:
A. elastic. B. inelastic. C. unit elastic. D. perfectly inelastic.