When the government uses a private subsidy in a market with an external benefit, to reach the efficient quantity of production, the subsidy must be equal to the marginal
A) social benefit.
B) cost of production.
C) private benefit.
D) external benefit.
E) external cost.
D
Economics
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All normal goods have
A) income elasticities of demand greater than 1.0. B) price elasticities of demand greater than 1.0. C) negative price elasticities of demand. D) positive income elasticities of demand.
Economics
Which of the following affected aggregate demand during the recession of 2008-2009?
a. a decline in residential construction and a decrease in lending b. a decline in residential construction but not a decrease in lending c. a decrease in lending but not a decline in residential construction d. neither a decrease in residential construction nor a decrease in lending
Economics