If a public good is financed through Lindahl prices, those whose total willingness to pay for the public good is high will end up paying a higher Lindahl price than those whose total willingness to pay for the public good is low.
Answer the following statement true (T) or false (F)
False
Rationale: The statement is true if "total" is replaced by "marginal".
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Suppose the following information describes the economy:Government purchases of goods and services1,000Household saving1,000Government transfers and interest payments500Tax collections500Business saving1,500Private saving equals ____and public saving equals ________.
A. 2,500; 0 B. 2,500; -1,000 C. 1,000; -500 D. 1,000; 0
Sustained economic growth in the U.S. has been primarily a product of which of the following factors?
(a) War and exploitation of natural resources (b) Capital accumulation, increases in capital and labor productivity, and technological advancements (c) Restricted trade (d) Government policies and market interventions
Marginal analysis is useful in economics, but not in other areas of life
a. True b. False Indicate whether the statement is true or false
Which of the following transactions would result in a credit for the United States?
a. Chinese investors purchasing securities of the U.S. government
b. U.S. households importing beer from German breweries
c. U.S. construction firms contracting with Japanese architects to design their buildings
d. German tourists visiting Yellowstone National Park