Refer to the data. If this good were a private good instead of a public one, the total quantity demanded at a $3 market price would be:
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. 2 units.
B. 3 units.
C. 6 units.
D. 4 units.
D. 4 units.
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In the economic way of thinking, a tropical rainforest is a scarce good. Thus,
A) there is no substitute for a tropical rain forest. B) there is a substitute for a tropical rain forest. C) tropical rains forests should be preserved at any cost. D) tropical rain forests can be preserved at no cost. E) economists don't like tropical rainforests.
If a country is in a major recessionary phase of the business cycle, one can expect that its currency will
a. revalue. b. devalue. c. appreciate. d. depreciate.
Government decision makers worldwide are concerned with the excessive growth in medical care spending. When looking for areas to cut, they typically rely on the low-hanging fruit, which includes:
a. surgeries treating acute conditions that are not life threatening. b. end-of-life care. c. pharmaceutical drugs targeting chronic conditions. d. preventive care. e. basic diagnostic screenings.
A government sometimes creates an excess supply of a product by setting a minimum price at which the product may be sold to consumers. This is sometimes called a:
A. price ceiling. B. price floor. C. tax. D. subsidy.