A plausible elasticity of investment with respect to the user cost is
A. 0.52
B. 1.62
C. 0.40
D. 2.22
C. 0.40
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The number of pre- and post-policy visitors, V1 and V2, (in thousands) is ____ and _____, respectively.
A collaborative federal and state program has been proposed in response to acid rain damagein Newport Bay, Maryland. To estimate the incremental benefits of the program, you use thetravel cost methodbasedupon the following pre- and post-policy recreational demand functions: Pre-policy: P = 62 – 0.02V1 Post-policy: P = 80 – 0.02V2, where V is the number of visitors (in thousands) and P is the admission fee. Assume the admission fee is set at $20 per visitor. a. 2,100; 3000 c. 61.6; 79.6 b, 44,100; 90,000 d. none of the above
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
A supply curve generally
a. is a straight horizontal line. b. is a straight vertical line. c. slopes downward to the right. d. slopes upward to the right.
Refer to the accompanying figure. At P = 8 and Q = 4, D1 is ________ elastic than D2, which is shown graphically as D1 being ________ D2.
A. less; flatter than B. more; steeper than C. less; steeper than D. more; flatter than