An economy's marginal social benefit curve for a private good is obtained by summing the individual marginal
a) cost curves horizontally
b) benefit curves vertically
c) benefit curves diagonally
d) benefit curves horizontally
Ans: d) benefit curves horizontally
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If taxes
a. increase, then consumption increases, and aggregate demand shifts leftward. b. increase, then consumption decreases, and aggregate demand shifts rightward. c. decrease, then consumption increases, and aggregate demand shifts rightward. d. decrease, then consumption decreases, and aggregate demand shifts leftward.
Fiscal policy involves
A. changing the money supply to change aggregate demand. B. printing money, borrowing, or taxing to cover government spending. C. changing government spending or taxes to increase aggregate demand. D. state and local authorities, not the federal government.