Refer to Figure 5-16. Suppose Amit and Bree know each other's preferences so that it is not possible for one to deceive the other
Which of the following statements best describes the circumstances under which the optimal quantity of street lights could be achieved?
A) The optimal quantity will be installed only if Bree pays for the entire installation cost.
B) The optimal quantity will be installed only if the two parties agree to pay according to their willingness to pay as indicated by their respective demand curves.
C) Because there are only two consumers, it is likely that private bargaining will result in the optimal quantity being installed.
D) The optimal quantity will be installed only if the two parties split the cost of installation equally.
C
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Refer to Figure 17-4. Which of the following is true at W0?
A) The substitution effect is larger than the income effect. B) The income effect and the substitution effect are equal. C) The income effect is larger than the substitution effect. D) The supply curve is positively sloped.
From 1980 through 2010, the debt-to-GDP ratio in the United States
A) is considered high by U.S. historical standards. B) has more than quadrupled. C) has slowly declined. D) has remained about average compared to countries in the OECD.
If consumption spending is the only variable of aggregate expenditure dependent on income, the multiplier is MPC/(1 - MPC)
a. True b. False Indicate whether the statement is true or false
Economic rent is the minimum payment necessary to induce any of the factor to be supplied
a. True b. False Indicate whether the statement is true or false