The marginal cost of producing 25 units of a public good is $100. There are two individuals in the society. Person A is willing to pay $40 for 25 units of the public good. If 25 units of the public good are provided, then Person B must be willing to pay
A. $0.
B. $40.
C. $60.
D. $75.
Answer: C
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Suppose the government of Southie imposes a per-unit sales tax on buyers in the market for jam and jellies. Which of the following is most likely to be an outcome of the tax?
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If this is a closed economy, the number of TVs exchanged will be ________. 
A. 60,000 B. 120,000 C. 30,000 D. 90,000