The income elasticity of demand is:
A. the percentage change in quantity demanded divided by the percentage change in price.
B. the percentage change in quantity demanded divided by the percentage change in income.
C. the percentage change in income divided by the percentage change quantity demanded.
D. the percentage change in price divided by the percentage change in income.
Answer: B
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Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. Suppose that Firms A, B, and C are the only polluters in the state and that each emits 4 tons of pollution into the atmosphere. To cut the level of pollution in half the government issues two transferable pollution permits to each firm. What is the total cost to society of decreasing pollution to half its present level if firm C buys one pollution permit from firm A and one pollution permit from firm B?
A. $515 B. $1,300 C. $1,380 D. $965 E. $10,350
The mean wage for workers aged 16 to 19 was over $7 per hour in 2005
Indicate whether the statement is true or false
The __________ gives loans to medium-income, creditworthy countries, and the ________ gives aid to poorer countries.
A. IDA; UNDP B. IDA; IBRD C. IBRD; IDA D. UNDP; IBRD
Suppose Johnson's Rubber Factory belches black smoke into the air over the city of Bellowsville. If the city of Bellowsville attempts to internalize the external costs associated with the production of rubber with a pollution tax, then we expect:
A. a leftward shift of Johnson's supply curve. B. a rightward shift of Johnson's supply curve. C. no change in Johnson's supply curve. D. a leftward shift in the demand curve for Johnson's rubber.