If GDP increases in the model of public goods
A) people are richer, so they need less public goods.
B) there is substitution from private goods to public goods.
C) if the government provides public goods optimally, public and private goods production both increase.
D) all of the increase in GDP goes into public goods.
C
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You are trying to decide whether to purchase the latest Harry Potter book online or borrow it from the library. There is no charge for borrowing a book from the library, but going to the library takes more time than ordering a book online. Regardless of how you get the book, its benefit to you is the same. If the cost of buying the book online is $13, then you should:
A. borrow the book from the library because you can get it from the library for free. B. borrow the book from the library if the cost of doing so (in terms of the extra time it takes) is less than $13. C. buy the book online because it takes less time. D. borrow the book from the library if the cost of doing so (in terms of the extra time it takes) is greater than $13.
Banks with which type of loans were most likely to fail during the early 1930s?
A) mortgage loans B) agricultural loans C) commercial real estate loans D) international loans
If increasing returns to scale are present, the long-run average cost increases as more output is produced
Indicate whether the statement is true or false
When the U.S. government runs a deficit, the resulting higher interest rate:
A. reduces firms' desire to invest, and "crowds out" domestic investment. B. increases firms' desire to invest, but "crowds out" domestic investment. C. reduces foreigners' willingness to invest in the U.S., but still "crowds out" domestic investment. D. increases foreigners' willingness to invest in the U.S., which "crowds out" domestic investment.