The above figure shows the marginal benefit and marginal cost curves for a public good. The quantity that has the best prospect of winning in an election by well-informed voters is

An example of economies of scale in the provision of financial services is

A) investing in a diversified collection of assets. B) providing depositors with a variety of savings certificates. C) hiring more support staff so that customers don't have to wait so long for assistance. D) spreading the cost of writing a standardized contract over many borrowers.

Under a system of flexible exchange rates, an increase in demand for a nation's currency in the foreign exchange market will: a. cause the nation's currency to appreciate

b. make it more expensive for the nation to import goods. c. cause the nation's balance on current account to shift toward a deficit. d. make it less expensive for foreigners to buy the nation's goods.