In a perfectly competitive market in which identical firms face the same horizontal marginal cost curve, if demand increases, then the amount of consumer surplus will
A. increase.
B. become negative.
C. decrease.
D. become zero.
Answer: A
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The optimal subsidy for private giving to a public good increases as the number of people benefiting from the public good increases.
Answer the following statement true (T) or false (F)
The discounted value of a future payment is also referred to as:
A) implicit value. B) explicit value. C) present value. D) temporal value.
Over time Americans have chosen to cook less at home and dine out more. This change in behavior:
A) increases GDP. B) reduces GDP. C) does not affect GDP. D) none of the above
If farm state legislators support the food-stamp program to aid the urban poor and urban state legislators in turn support farm subsidies, this is an example of:
A. the special-interest effect. B. political logrolling. C. the paradox of voting. D. cost-benefit analysis.