A demand curve for a public good is determined by:
A. summing vertically the individual demand curves for the public good.
B. summing horizontally the individual demand curves for the public good.
C. combining the amounts of the public good that the individual members of society demand
at each price.
D. multiplying the per-unit cost of the public good by the quantity made available.
Answer: A
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In the long run, with an increase in the plant size, _____
A. the short-run average total cost curve shifts downward B. the long-run average cost curve slopes downward C. the short-run average total cost curve shifts downward if economies of scale exist D. the average total cost of production rises
Suppose there was an unexpected increase in aggregate demand. We would expect to observe
A) frictional unemployment to increase. B) the duration of unemployment and the amount of unemployment to decrease. C) higher wages, with the duration of unemployment and the amount of unemployment unchanged. D) a decrease in aggregate demand.
Suppose you received a 5 percent increase in your nominal wage. Over the year, inflation ran about 2 percent. Which of the following is true?
a. Your real wage fell. b. Your nominal wage fell. c. Both your nominal and real wages decreased. d. Although your nominal wage fell, your real wage increased. e. Both your nominal and real wages increased.
Which statement is true?
A. There are at least a dozen different theories of poverty. B. The liberals and conservatives are in basic agreement about the causes of poverty. C. The liberals and conservatives are in basic agreement about how to solve the poverty problem. D. None of these statements are true.