If a pollution tax in a market with an external cost changes the market so that it produces the efficient level of output, which of the following occurs?
i. The supply curve shifts leftward.
ii. The price increases.
iii. The quantity produced decreases.
A) i only
B) ii only
C) iii only
D) i and ii
E) i, ii, and iii
E
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In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the CPI in 2013?
A) 59 B) 129 C) 169 D) 102
If there are five firms in an industry, each with a market share of 20 percent, the Herfindahl-Hirschman Index (HHI) of concentration is
A) 2000. B) 400. C) 100. D) 20.
If the government were to decrease its spending, it would expect aggregate demand to:
A. fall, and thus GDP to fall. B. rise, and thus GDP to fall. C. fall, and thus GDP to rise. D. rise, and thus GDP to rise.
A star basketball player signs a contract that newspaper reports say is worth $10 million. The player receives $5 million on signing, and $5 million a year for three years. The contract is worth
A) $10 million as reported in the papers. B) less than $10 million since the present value of $5 million received one or more years from now is less than $5 million. C) more than $10 million because the present value of $5 million received one or more years from now is more than $5 million. D) either more or less than $10 million, depending on the value of the discount rate.