Explain why the social demand curve for a public good is the vertical sum of the demand curves of each individual
What will be an ideal response?
A public good lacks rivalry, so many people can get pleasure from the same unit of output. Thus, for each unit of public good, the total willingness to pay is the sum of everyone's willingness to pay because everyone can consume the good.
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The set of items that serve as media of exchange clearly includes
a. balances that lie behind debit cards. b. demand deposits. c. other checkable deposits. d. All of the above are correct.
Refer to the given data, symbols, and assumptions. If migration is costless and unimpeded:
Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the cumulative total product (output) of the particular number of workers.
Assumptions: (1) The current wage in Zinnia is $20 and the current wage in Marigold is $12; (2) full employment exists in both countries.
A. no migration will occur.
B. migration will cause the wage in Marigold to fall.
C. 2 workers will move from Marigold to Zinnia.
D. 4 workers will move from Marigold to Zinnia.