Suppose there are three houses in a neighborhood. The residents are considering installing street lights and are trying to determine how many lights need to be installed
Each resident's willingness to pay for street lights is given in the table below.
Number of Street Lights House 1 House 2 House 3
1 $300 $400 $200
2 $280 $360 $160
3 $240 $300 $120
4 $180 $220 $100
5 $80 $100 $10
If the cost of installing one light is $500, how many lights will be installed?
A) 1
B) 2
C) 4
D) 5
C
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The balance of payments is in equilibrium when
A) the sum of the current account balance and capital account balance is zero. B) net exports are zero. C) net foreign investment is zero. D) real foreign investment is equal to net exports.
It is often stated that the Japanese firms develop and adapt new technology to manufacturing process twice as fast as U.S. firms. If this is true, ceteris paribus, we would conclude that the
A) depreciation rate of capital does not change, but the user cost of capital increases. B) depreciation rate of capital increases, but the user cost of capital decreases. C) depreciation rate of capital increases, and the user cost of capital increases. D) U.S. interest rate is too high, preventing American manufacturers from adopting new technologies.