The efficient quantity of a public good occurs when the marginal cost of providing that good equals the sum of the marginal benefits to all individuals
Indicate whether the statement is true or false
True . The demand for the public good is found by vertically summing so that we have the sum of the marginal benefits at each quantity.
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Answer the following statements true (T) or false (F)
1. The World Bank is the organization to which DVCs turn as a "last-resort" lending agency for projects that private institutions will not fund. 2. One reason why foreign aid is viewed as harmful is that it promotes dependency. 3. One policy recommended by most economists for promoting economic growth in DVCs is the nationalization and protection of domestic industries. 4. One recommended policy that IACs could adopt to help DVCs is to recruit and hire skilled workers from DVCs for businesses in IACs. 5. One effective way that IACs can help DVCs is to lower trade barriers on products produced by DVCs.
A sales tax is an example of:
A. a specific tax. B. an ad valorem tax. C. a lump sum tax. D. an income tax.