Long Beach Island, off the coast of New Jersey, is considering building a sand barrier to protect the houses on the island from future hurricanes. The marginal social benefit of the barrier is equal to the
A) marginal private benefit of the person who benefits the most from the barrier.
B) marginal private benefit of the person who benefits the least from the barrier.
C) sum of the marginal private benefits for anyone who benefits from the barrier.
D) difference between the marginal private benefit of the person who benefits the most and the person who benefits the least from the barrier.
C
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The reason relative purchasing power parity (RPPP) is better at predicting exchange rates than absolute purchasing power parity (APPP) is because:
a. Actually, it is the other way around. APPP has been shown empirically and theoretically to be a more accurate way to predict exchange rates. b. APPP deals only with countries that have some sort of imbalance like hyperinflation. RPPP deals with any and all countries, which makes the job of predicting exchange rates easier. c. APPP has to begin and end in parity. RPPP just requires that the initial disequilibrium remain the same. d. APPP predictions are often biased because of central bank controls, sticky prices, and protectionism. RPPP can abstract from these problems.
If the marginal revenue product of an input is greater than its price, the
A. firm should decrease its use of the input to bring the two values into equality. B. firm should raise the price of the product. C. firm should increase the use of the input to bring the two values into equality. D. firm should search for another input to use in its production.