If GDP increases in the model of public goods
A) people are richer, so they need less public goods.
B) there is substitution from private goods to public goods.
C) if the government provides public goods optimally, public and private goods production both increase.
D) all of the increase in GDP goes into public goods.
C
You might also like to view...
Which of the following statements is true?
A. Current account balance = -(capital account balance). B. A country's balance on current account equals its balance on capital account. C. If the market for a nation's currency is in equilibrium, a capital account surplus necessarily means a current account surplus. D. Capital accounts and current accounts balances are determined by governments.
If a firm employs an extra unit of labor, the additional product generated by employing the extra unit of labor is
A) the marginal physical product of labor. B) the diminished marginal product. C) the outside edge. D) total product.