Theoretically, the market demand for a public good is found by
a. vertically addingthe MEC and MPCfunctions
b. overcomingfree-ridership and vertically summingthe price responses for each quantity
c. adding horizontally the marginal benefits received by each consumer at every price level
d. summing the quantities each person is willing and able to buy at each and every price
b. overcomingfree-ridership and vertically summingthe price responses for each quantity
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The Dred Scott v. Sanford decision of the U.S. Supreme Court in 1857
(a) made all persons born in the U.S. citizens. (b) provided U.S. citizenry to the children of U.S. born slaves. (c) permitted slaves to sue others in courts. (d) prevented slaves from being taken away from their owners without due process.
Suppose a bottle of wine produced in France sells for 35 euros. If the exchange rate between euros and dollars is €1 = $1.30, how much will an American pay for the bottle of wine in America?
A. $130.00. B. $26.92. C. $45.50. D. $35.00.
A tax subsidy is involved in employer-financed health insurance because:
A. all working adults are covered by Medicare. B. all working adults are covered by Medicaid. C. employer payments for health insurance are not subject to income or payroll taxes. D. corporations that provide health insurance pay lower corporate income tax rates.
Because perfectly competitive markets rarely exist in the real world, the model has limited usefulness
a. True. b. False.