A government passes a new law allowing only 1,000 tons of pollution per day to be generated and simultaneously sells 1,000 transferable rights to emit one ton each of pollution per day. Which of the following is true?
a. The pollution will be created by those least willing and able to pay the damages.
b. The pollution will be created by those most willing and able to pay for the right to pollute.
c. The funds collected by the government will be enough to compensate any individuals harmed by the pollution.
d. Pollution will increase from zero to 1,000 units per day.
e. There will be no incentive for polluters to try to sneak emissions past government monitoring devices.
B
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Pizza Hut lowers the price of its pizza. The price elasticity of demand for Pizza Hut pizza equals 0.3. What happens to the Pizza Hut's total revenue?
A) nothing B) It increases. C) It decreases. D) It becomes negative. E) It might change, but more information is needed to determine if it increases, decreases, or does not change.
Very Technical is a firm that sells computing equipment. It costs Very Technical $40 for each order of computer monitors and the variable cost of placing an order is $5 per monitor. If Very Technical sells 2,000 computer monitors a year and they order 50 monitors, what is the annual ordering cost of the monitors?
A) $122,500 B) $116,000 C) $95,500 D) $87,500
Under these conditions, the ratio of the international price of services relative to the price of goods should fall into what range?
a) less than 9/8 b) 9/8 to 2.4 c) 4/3 to 1.6 d) 1.5 to 1.8 e) more than 2.4
An increase in the market clearing exchange value of the home nation's currency in terms of the currency of another nation is a home currency
A) appreciation. B) depreciation. C) devaluation. D) revaluation.