The marginal cost of producing 25 units of a public good is $100. There are two individuals in the society. Person A is willing to pay $40 for 25 units of the public good. If 25 units of the public good are provided, then Person B must be willing to pay
A. $0.
B. $40.
C. $60.
D. $75.
Answer: C
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Why does continued foreign investment in U.S. stocks and bonds and foreign companies continuing to build factories in the United States result in a current account deficit in the United States?
What will be an ideal response?
The short-run aggregate supply curve shows the _____ relationship between the inflation rate and real growth during the period when prices and wages are _____
Fill in the blank(s) with the appropriate word(s).
Thinking about the total utility gained from the consumption of a typical good, we can say in general that:
A. total utility will rise, peak, and then decline as more and more units are consumed. B. total utility is maximized where the marginal utility is greatest. C. consuming more and more units of a good will eventually cause marginal utility to increase D. total utility increases by decreasing amounts, until it is maximized. Then it declines.
Basic attributes of a society that permit citizens to trust in the functioning of its institutions are best summarized as
a. governance b. social capital c. shared growth d. developmental state e. all of the above