Public goods tend to be undersupplied through the market since it is difficult for potential suppliers to withhold such goods from nonpaying consumers; the government can use taxes to overcome this problem of nonpayment

In the long run, with an increase in the plant size, _____

A. the short-run average total cost curve shifts downward B. the long-run average cost curve slopes downward C. the short-run average total cost curve shifts downward if economies of scale exist D. the average total cost of production rises

The open economy multiplier is calculated as follows:

A) 1/[1-(marginal propensity to consume + marginal propensity to invest)] B) 1/[1-(marginal propensity to consume + marginal propensity to import)] C) 1/[1-(marginal propensity to consume + marginal propensity to invest + marginal propensity to import)] D) 1/[1-(marginal propensity to consume + marginal propensity to invest - marginal propensity to import)]