Efficient production of a public good requires:
a. that individuals pay for such goods according to benefits received.
b. that each individual's MRS be equal to the RPT of public goods for private goods.
c. that the sum of individuals' MRSs be equal to the RPT of public goods for private goods.
d. that governments produce at the low point of the average cost curve for the public good.
c
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Suppose that the exchange rate between Japanese yen and U.S. dollars is originally 130 yen to the dollar. If it then changes to 150 yen to the dollar, exports of U.S. goods to Japan will tend to: a. rise
b. fall. c. stay the same. d. change in an indeterminate direction.
There is some agreement between the beliefs of President George W. Bush in 2001 on the effectiveness of tax cuts with the beliefs of former President
A. Keynes. B. Clinton. C. Reagan. D. Carter.