National defense is a good that is nonexcludable and nonrival in consumption. Suppose that instead of national defense being paid for with tax dollars national defense is paid for by voluntary contributions from (potentially) all individuals within Latvia. Ernest, who is a Latvian citizen, must decide whether he wants to contribute to the national defense budget. Further, suppose that there are a total of 10 citizens, including Ernest. For the optimal amount of safety, each citizen should pay $ 10. Every $ 1 contributed (by anyone) to the national defense leads to increased security, which each person values at $ 0.30. This means that every dollar spent on defense is worth $ 3.00 to Latvia as a whole. How much does Ernest personally value the increase in national defense when he contributes $ 10 to the defense fund?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “National defense is a good that is nonexcludable and nonrival in consumption. Suppose that instead of national defense being paid for with ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
At p1y1, if taxes decrease then consumer spending will decrease and ad will shift right to long-run equilibrium. decrease and ad will shift left to long-run equilibrium. increase and ad will shift right to long-run equilibrium.
Answers (1)
Keys to making short-term decisions include which of the following? A. Using a contribution margin approach that separates variable costs from fixed costs B. Focusing on relevant revenues, costs, and profits C. Both of the above D. None of the above
Answers (1)
T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions.
Answers (1)
Cambridge State Bank is paying 7% interest on its one-year certificate of deposit. Ifthe inflation rate is 4%, which of the following is the best approximation for the realrate of interest that Cambridge State Bank is paying? a. 2.88 %b. 1 ¾ %c.
Answers (1)
Starr Company reports the following information for August. Raw materials purchased on account $ 76,200 Direct materials used in production $ 48,000 Factory wages earned (direct labor) $ 15,350 Overhead rate 120 % of direct labor cost Prepare
Answers (1)
New Questions in Business
4. Trade policies Tariffs and quotas do which of the following? Benefit domestic producers of the protected good and harm domestic consumers of the protected good Benefit foreign producers of the protected good and harm domestic producers of the
Answers (1)
How did whirlpool use capabilities of text analytics to better understand their customers and improve product offerings?
Answers (1)
How did the Once-ler encourage his target market to learn more about the thneeds?
Answers (1)
Preparing a Budgeted Income Statement Oliver Company provided the following information for the coming year: Units produced and sold 160,000 Cost of goods sold per unit $6.30 Selling price $11 Variable selling and administrative expenses per unit $1.
Answers (1)
What is NOT one of the three primary resources that families have to reach financial goals?
Answers (1)