The privately-owned school system in Smalltown has a virtually unlimited capacity. It accepts all applicants and operates on both tuition and private donations. Although every resident places value on having an educated community, the school's revenues have suffered lately due to a large decline in private donations from the elderly population. Since the benefit that each citizen receives from
having an educated community is a public good, which of the following would not be correct?
a. The free-rider problem causes the private market to undersupply education to the community.
b. The government can potentially help the market reach a socially optimal level of education.
c. A tax increase to pay for education could potentially make the community better off.
d. The private market is the best way to supply education.
d
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Refer to the figure above. What does the region ABCPe denote?
A) Economic profit B) Loss incurred by the producer C) Consumer surplus D) Deadweight loss
During this year a country reports imports of $1,000 billion, exports of $1,100 billion, foreign investment in the country of $900 billion, investment abroad of $1,200 billion, net interest and net transfers of zero
What is the country's current account balance?