Refer to the data. The collective willingness of this society to pay for the second unit of this public good is:
Answer the question on the basis of the following information for a public good. P a and P b are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society.
A. $2.
B. $4.
C. $6.
D. $8.
C. $6.
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In any year, real GDP
A) must always be less than potential GDP. B) might be greater or less than potential GDP. C) will always be greater than potential GDP because of the tendency of nations to incur inflation. D) always equals potential GDP.
U.S. producer surplus ________ when the United States imports a good and U.S. producer surplus ________ when the United States exports a good
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases