Because pollution taxes raise the costs of production for firms, firms:
A. will lower prices to consumers.
B. must receive a higher price at every level of output.
C. will increase the quantity produced at every price.
D. will quit producing goods that generate pollution.
Answer: B
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In the above table, the size of the labor force is
A) 210 million. B) 155 million. C) 140 million. D) 100 million.
The more elastic is the demand for a product:
A. the greater the difference between marginal revenue and price. B. the closer is marginal revenue to the price. C. the more a firm must reduce its price to increase its sales. D. the less a firm must increase its sales to reduce the price.
If the Federal Reserve sells $1,500 in bonds and the resulting money supply change is $7,500, what is the required reserve ratio?
a. 5.0 b. 0.2 c. 0.1 d. 0.4 e. 0.8
Suppose the Canadian government's budget is G = $200 and T = $100 while the U.S. government's budget is G = $800 and T = $800 . We can conclude that
a. Canada has a deficit budget while the U.S. has a balanced budget and the Canadian budget is more expansionary than the U.S.'s b. both budgets are balanced and the balanced budget multiplier in Canada is 0.5 while in the U.S. it is 0.8 c. Canada has a surplus budget while the U.S. has a balanced budget and the Canadian budget is more expansionary than the U.S.'s d. Canada has a deficit budget while the U.S. has a balanced budget and the Canadian budget is less expansionary than the U.S.'s e. Canada has a surplus budget while the U.S. has a balanced budget and the Canadian budget is less expansionary than the U.S.'s