Explain why the social demand curve for a public good is the vertical sum of the demand curves of each individual
What will be an ideal response?
A public good lacks rivalry, so many people can get pleasure from the same unit of output. Thus, for each unit of public good, the total willingness to pay is the sum of everyone's willingness to pay because everyone can consume the good.
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Refer to the graph below illustrating the Lorenz Curves for Sweden, the United States, and Brazil. Which country has the greatest equality in the distribution of income?
a. Sweden
b. United States
c. Brazil
d. The greatest equality in the distribution of income cannot be determined from this graph
Designating the cashier to be custodian of the petty cash fund is more acceptable from the standpoint of internal control than making the cashier responsible for maintenance of accounts receivable records.
a. true b. false
Suppose a bond promises to make a single payment at maturity. These types of bond are called
A) junk bonds. B) indexed bonds. C) corporate bonds. D) discount bonds. E) constant maturity bonds.
Economic profits are
A. total revenue minus explicit and implicit costs. B. total revenue minus implicit costs. C. total revenue minus accounting costs. D. total revenue minus explicit costs.