If benefit functions for a public good could be identified accurately, incremental benefits would be measured as
a. the area under the MSB function between the pre- and post-policy abatement levels.
b. the area under the TSB function between the pre- and post-policy abatement levels.
c. a horizontal distance on the MSB model corresponding to the pre- and post-policy abatement levels
d. none of the above
a. the area under the MSB function between the pre- and post-policy abatement levels.
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One example of an entrepreneur is:
a) a writer who is hired by a film studio to adapt a novel into a screenplay b) a lawyer in a high-profile law firm that specializes in business law c) an Olympic ice skater who later decides to join a professional ice show d) an artist who runs a business painting murals in office buildings and restaurants
The flexible accelerator theory
A) recognizes that the desired capital-output ratio is not a constant. B) assumes that firms can make this period's actual capital stock equal to the desired capital stock. C) sets this period's expected output equal to last period's actual output. D) recognizes that a constant fraction of the capital stock is replaced each period.