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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Kevin Price has been one of Shirley Jones' clients for twenty years before he retired and moved away. Kevin has decided to mail his tax information to Shirley at the office to get his return completed.
Answers (1)
Nelson Mfg. owns a manufacturing facility that is currently sitting idle and is debt-free. The facility is located on a piece of land that originally cost $159,000. The facility itself cost $1,390,000 to build.
Answers (1)
Consumer protection laws are meant to: A) Protect businesses from consumers. B) Prevent unfair or deceptive business practices. C) Protect consumers from spending too much money. D) Prevent consumers from buying unnecessary items.
Answers (1)
On December 31, Key Co. received two $10,000 noninterest-bearing notes from customers in exchange for services rendered. The note from Alpha Co., which is due in 9 months, was made under customary trade terms, but the note from Omega Co.
Answers (1)
Rules of thumb rarely if ever lead to severe errors in the decision making process. a. Trueb. False
Answers (1)
New Questions in Business
Both Bond Sam and Bond Dave have 6 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has four years to maturity, whereas Bond Dave has 19 years to maturity. a.
Answers (1)
What role have public speeches served in ancient societies?
Answers (2)
What is the total annual value of goods and services produced in a country called? A. Gross Domestic Product B. Gross National Product C. Personal Disposable Income D. Gross National Income
Answers (1)
Marketing ethics refers to the moral or ethical dilemmas that might arise in a business setting, according to various moral and ethical principles that might arise in a business setting, and any special duties or obligations that apply to persons
Answers (1)
n a semantic priming task, A. presenting one word interferes with identifying a related word in a lexical decision task. B. presenting one word makes it easier to identify a related word in a lexical decision task. C.
Answers (1)