A tax on sellers:
A. cause equilibrium price and quantity to decrease.
B. cause equilibrium price to decrease and equilibrium quantity to increase.
C. cause equilibrium price and quantity to increase.
D. causes equilibrium price to increase and equilibrium quantity to decrease.
Answer: D
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Which of the following best illustrates a vertical merger
a. GM merges with Chrysler b. Nike merges with Kraft Foods c. Microsoft merges with Dell d. UPS merges with FedEx e. Apple merges with IBM
Sadie is getting ready to go to work where she earns $70 a day as a day laborer. Her friend Caroline calls her and asks her to go swimming with sharks for the day. Sadie decides to go with her. Sadie's choice implies that her opportunity cost of working is:
A. less than $70. B. greater than $70. C. equal to $70. D. Cannot say without more information.
Compared to the efficient level of abatement, the benefit-based abatement standard
a. is twice as large in this case b. uses fewer resources c. is associated with higher water quality d. is more cost-effective
Randolph is taking three courses this semester: economics, statistics, and finance. He has decided to spend 20 hours per week studying (in addition to attending all his classes) and his objective is to maximize his average grade, which means maximizing the total of his grades in the three courses. The table shows Randolph's estimate of the relation between time spend studying and his grade for each course. 
Based on the above info, how should Randolph allocate his time?
A. 7 hours economics, 6 hours statistics, 5 hours finance B. 7 hours economics, 7 hours statistics, 6 hours finance C. 6 hours economics, 5 hours statistics, 7 hours finance D. 6 hours economics, 6 hours statistics, 8 hours finance