Refer to the data. Suppose government has already produced 4 units of this public good. The amount individual B is willing voluntarily to pay for the 4 th unit is:
Answer the question on the basis of the following information for a public good. P a and P b are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society.
A. $14.
B. $5.
C. $2.
D. $0.
D. $0.
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Full-employment output is the level of output that is produced when the labor market is in equilibrium
Indicate whether the statement is true or false
Governments are often forced to bail out large banks to prevent the entire economy from being affected adversely. This provision often encourages banks to invest in risky assets. This is an example of ________
A) moral hazard B) a positive externality C) adverse selection D) anchoring
For a collective consumption good, market demand is found by ______
a. horizontally summing individual demand curves b. vertically summing individual demand curves c. estimating a market demand function based on survey data d. estimating a market demand function based on data from similar goods having market pricing
A surplus of shoes will cause
a. a decrease in the supply of shoes b. a decrease in the demand for shoes c. both a decrease in the supply of shoes and an increase in the demand for shoes d. a decrease in the price of shoes, through a shift of either the supply curve or the demand curve e. a decrease in the price of shoes