If an economy's consumption spending is $5 trillion, investment is $2 trillion, government spending is $1 trillion, net taxes are $1 trillion and household saving is $2 trillion, total income is
a. $3 trillion
b. $5 trillion
c. $7 trillion
d. $8 trillion
e. $11 trillion
D
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What is the relationship between the marginal benefit, value, and demand?
What will be an ideal response?
The efficient quantity of a pure public good occurs when the marginal cost of producing that good equals the
A) marginal benefit to the median voter. B) marginal benefit to each individual. C) sum of all individual marginal benefits. D) sum of all individual marginal benefits divided by the number of voters.
In markets where restrictions on advertising have been used to curtail competition, the U.S. courts have generally
a. referred the matters of advertising restrictions to executive regulators. b. enforced industry-wide agreements to restrict advertising. c. been silent on the effect of explicit advertising restrictions. d. overturned laws that prohibit advertising.
A monopoly:
A. can increase price and increase output at the same time. B. can charge any price it wants and still sell all of its output. C. can sell any output it produces provided it accepts the market price. D. must lower price in order to increase output.