When deciding whether or not to provide a public good, a government's policy should be to provide the good where society's marginal benefit is smaller than the marginal cost of the good
a. True
b. False
Indicate whether the statement is true or false
False
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In the figure above, the shift in the supply curve for U.S. dollars from S0 to S2 could occur when
A) the U.S. interest rate falls. B) the expected future exchange rate rises. C) the U.S. interest rate differential increases. D) the current exchange rate falls.
Suppose that the production function for an economy is graphed with Real GDP on the vertical axis and labor on the horizontal axis. When the level of capital in this economy rises, it causes ____________________which shifts the LRAS curve ____________ resulting in ______________________
A) a movement down along a given production function; leftward; a shrinking economy B) the production function to shift downward; leftward; a shrinking economy C) a movement up along a given production function; rightward; economic growth D) the production function to shift upward; rightward; economic growth