The marginal cost of serving an additional user of a public good is zero
a. True
b. False
Indicate whether the statement is true or false
True
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Use the graph to answer the following question:
If the market for investment is initially in equilibrium at point A, but then implementation of fiscal policy causes crowding out to occur, the equilibrium in the market will likely
A. remain at point A. B. move toward point B. C. move toward point C. D. move toward point D.
When the actual real interest rate is less than the equilibrium real interest rate
A) the equilibrium real interest rate will rise. B) borrowers find it difficult to borrow. C) there is a shortage of loanable funds. D) Both answers B and C are correct.
Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If the price of good B increases, the new equilibrium is most likely to be
A) point f. B) point d. C) point e. D) point h. E) point b.
A Lorenz curve measures the ________ on the horizontal axis
A) cumulative percentage of family income B) cumulative percentage of family wealth C) cumulative percentage of families D) demand of families on welfare