Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $1000. All five citizens will share an equal portion of this cost in taxes. The benefit of the public good is $220 to Abby, $210 to Ben, $210 to Clara, $180 to Joe, and $120 to Matt. In a majority vote, this proposal will most likely be:
A. Accepted; the public good is produced even though it is economically inefficient
B. Defeated; the public good is not produced even though it would have been efficient to do so
C. Accepted; the public good is produced which is economically efficient
D. Defeated; the public good is not produced, which is the proper outcome
A. Accepted; the public good is produced even though it is economically inefficient
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Jane spends her monthly dining-out budget of $300.00 on either steak or lobster dinners. Using the above figure, what is the price of a steak dinner?
A) $10.00 B) $15.00 C) $20.00 D) $30.00
Government spending in the United States has grown over time and now accounts for more than forty percent of United States national income. Does this mean that government has been consistently running a budget deficit?
What will be an ideal response?
The government's budget accounts for about 80 percent of GDP in the United States
a. True b. False Indicate whether the statement is true or false
The owner of a perfectly competitive firm is currently earning an economic profit of zero. This owner
A) should shut down since profits of zero are not good. B) should raise the price of the product to increase profits. C) is covering all of his fixed costs. D) will continue producing in the short-run but will shut down in the long run if profits do not increase.