Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below.
The public's willingness to pay for the 2nd acre of parkland is ________.
A. $14.
B. $8.
C. $6.
D. $26.
Answer: D
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Which of the following reflects diseconomies of scale?
a. Marginal product decreases as output increases. b. Short-run marginal cost increases as output increases. c. Long-run marginal cost increases as output increases. d. Short-run average cost increases as output increases. e. As output doubles, long-run total cost more than doubles.
The national debt is
What will be an ideal response?
Adding up all of the consumer and producer surpluses determines ______.
a. minimum alternative tax b. total welfare gains c. maximum deadweight loss d. optimal subsidy levels
The figure below shows an IS-LM-FE model for an economy with fixed exchange rates. Initially the economy is at Point A, a triple intersection. Here, the FE curve is steeper than the LM curve.
Assume that the economy was initially at Point A. Which of the following could have caused the economy to move to and remain at Point B?
A. Expansionary monetary policy with sterilization B. Contractionary fiscal policy without sterilization C. Expansionary monetary policy without sterilization D. Expansionary fiscal policy with sterilization