For a private good, the economy's marginal social benefit curve is the _______________ sum of the individual marginal benefit curves and for a public good, the economy's marginal social benefit curve is the ________________ sum of the individual marginal benefit curves.
a) horizontal; vertical
b) horizontal and vertical; vertical and horizontal
c) vertical; vertical
d) vertical; horizontal
Ans: a) horizontal; vertical
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Explain how government intervention can improve economic efficiency in public good market
Please provide the best answer for the statement.
If the quantity supplied is infinitely responsive to any change in price, the supply curve is:
A. upward sloping. B. downward sloping. C. horizontal. D. vertical.
In the United States, most often the ________ changes first, and the ________ follows.
A. GDP deflator; CPI B. PPI; CPI C. PCE; CPI D. CPI; PPI
Suppose the actual federal funds rate is below the rate implied by a particular inflation goal. In this situation, the Taylor rule implies that
A. monetary policy is contractionary. B. fiscal policy is contractionary. C. monetary policy is neither expansionary or contractionary. D. monetary policy is expansionary.