When planned investment exceeds saving in a private closed economy:

According to the Application, one factor which was responsible for roughly one-fifth of hybrid vehicles purchased in 2007 was a federal subsidy of up to $3,400 per hybrid vehicle

The increase in sales due to this subsidy is an example of which element of the economic way of thinking? A) responding to incentives B) using assumptions to simplify C) thinking at the margin D) isolating variables

Pure public goods

a. are goods that are provided by the government b. are economically efficient c. are economically inefficient d. are both nonrival and nonexcludable e. are Pareto optimal