Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below.
Suppose the town can purchase land for the park at a cost of $8 per acre. The optimal park size would be ________ acres.
A. 4
B. 6
C. 2
D. 8
Answer: D
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The public debt is
A) an excess of government spending over government revenues during a given time period. B) all federal government debt irrespective of who owns it. C) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. D) the total value of all outstanding federal government securities.
All of the following are sources of loanable funds EXCEPT
A) business investment. B) private saving. C) government budget surplus. D) international borrowing.
If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 8,000 per year, there is a ________ in the market and the price will ________
A) shortage; rise B) shortage; fall C) surplus; rise D) surplus; fall
Suppose coal sells for $50 per ton and can be mined at a constant marginal cost of $20 per ton. Forecasters predict that the price of coal next year will be $55
If your marginal cost next year will still be $20 and the interest rate is 10%, do you sell coal today?