Refer to the information below. If only 1 unit of this public good is produced, then the marginal benefit is:
Answer the question on the basis of the following information is for public good. Pa and Pb represent the prices that citizens (a) and (b), the only two people in this nation, are willing to pay for additional units of a quantity (Qc) of the public good. Qs represents the quantity of the public good supplied by government at each of the collective prices.
A. $3 and the marginal cost is $9
B. $4 and the marginal cost is $7
C. $6 and the marginal cost is $3
D. $9 and the marginal cost is $3
D. $9 and the marginal cost is $3
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"An Inquiry into the Nature and Causes of the Wealth of Nations" published in 1776 was written by
A) Alfred Marshall. B) Karl Marx. C) John Maynard Keynes. D) Adam Smith.
If the Fed wants to maintain current interest rates, it would be buying government bonds in the open market when
A) the demand for money increases. B) investment demand decreases. C) the discount rate increases. D) the demand for money decreases.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
Given C = 200 + 0.75YD, the multiplier is
A. 0.75. B. 0.25. C. 4. D. 1.33.