When a country's imports are larger than its exports, the country is running a trade deficit
Indicate whether the statement is true or false
TRUE
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Each year around July 4 the town of Flagston has a controversy over how big a fireworks display they should have on the holiday. The three citizens have the demand functions for fireworks that are shown here. The cost per firecracker is $18. Elmer has the demand function P = 20 - Q. Ethel's demand equation is P = 12 - .6Q, and Edith has the demand P = 8 - .4Q.Draw a graph of the individual demand equations and the total community demand for fireworks. Sketch in the marginal cost function as well.
What will be an ideal response?
If each of us relied exclusively on the market to determine what to buy, we would probably end up with few, if any:
A. streetlights. B. strawberries. C. televisions. D. raincoats.
If the production of a good generates a negative externality, then at the market equilibrium quantity, the marginal cost to society of another unit of the good will be:
A. less than the marginal benefit of another unit. B. greater than the marginal benefit of another unit. C. negative due to the external cost. D. equal to the marginal benefit of another unit.
Trade-offs force society to make choices when answering what three fundamental questions?
What will be an ideal response?