A change in regulations increases the size of the airplanes that can fly into a local regional airport. The increase in average plane size increases noise pollution considerably
If compensation is to be paid to those harmed by this externality, the most efficient form of compensation would be _____. a. a lump sum payment b. a payment per violation c. a set payment every month
d. regular payments equal to the monthly cost imposed on homeowners
a
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Marginal revenue (MR) is ____ when total revenue is maximized
a. greater than one b. equal to one c. less than zero d. equal to zero e. equal to minus one
The short-run aggregate supply curve slopes
a. downward because firms can sell more, and hence, will produce more when prices are lower b. downward because firms find it costs less to purchase labor and other inputs when price are lower, and hence they produce more c. upwards because when the price level rises, output prices rise relative to input prices (costs), raising profit margins and increasing production and sales d. upward because firms find it cots more to purchase labor and other inputs when prices are higher, and hence they must produce and sell more in order to make a profit
During the recession of 2007-2009, the Federal Reserve began cutting its target for the Federal Funds rate in
A. September of 2007. B. September of 2008. C. January of 2009. D. January of 2007.
Suppose that three consumers are in the market for good X. Consumer 1's (inverse) demand is PX = 40 ? 5QX; Consumer 2's (inverse) demand is PX = 10 ? QX; and Consumer 3's (inverse) demand is PX = 30 ? 2QX. When PX = $5, the market will demand:
A. 15.5 units. B. 24.5 units. C. ?12 units. D. None of the statements is correct.