A benefit that accrues to people other than the buyer of a good is known as ________ benefit
A) an internal
B) an external
C) a marginal
D) a total
E) a subsidized
B
You might also like to view...
According to your authors, the prohibition on alcohol in the U.S. primarily shifted the ________ curve to the ________
A) supply; right B) supply; left C) demand; left D) demand; right
According to Adam Smith's invisible hand
A) markets need the government to intervene. B) forces are constantly pushing markets out of equilibrium C) people coordinate their activities, resulting in equilibrium in the market. D) there is an invisible glove that restricts what markets can do.
Sam has preferences for weekly Video Games (V) and Sodas (S) described by the utility function U(V,S) = V2S2. Suppose the prices are denoted by pV and pS and Sam has income given by I
Assume that in Sam's optimal bundle, he consumes strictly positive quantities of both goods. a. Write out Sam's optimization problem and the associated Lagrangian expression. b. Compute the three critical value (first-order) conditions from the Lagrangian. c. Using your answer to b, find the expression for the optimal bundles as functions of the prices and income.
Giving up consumption today for consumption tomorrow accelerates economic growth by
A) having the economy produce no consumer goods. B) increasing saving out of disposable income. C) increasing the expected rate of inflation. D) rapid expansion of the money supply.