When producers (say, of roads) are not able to make all consumers pay for enjoying their product (i.e., the roads), they tend to see a:
A. Marginal cost of production that is too low, and there is a supply-side market failure
B. Marginal benefit of production that is too high, and there is a demand-side market failure
C. Marginal cost of production that is too high, and there is a supply-side market failure
D. Marginal benefit of production that is too low, and there is a demand-side market failure
D. Marginal benefit of production that is too low, and there is a demand-side market failure
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At the beginning of the year, Becky's wealth was $30,000. During the year, she earned $50,000 of income, paid $6,000 in taxes and consumed $43,000 of goods and services. What is Becky's wealth at the end of the year?
What will be an ideal response?
Of the three major categories of consumption, ________ is the most volatile because their purchase ________
A) services; is sensitive to income levels B) nondurables; is sensitive to income levels C) durables; can be postponed when incomes decline D) durables; they are necessities