Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each. Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Firm X ($/day) $500$514$530$555$585 Cost to Firm Y ($/day) $400$420$445$480 $520Cost to Firm z ($/day) $300$325$360$400 $550For all three firms, the marginal cost of pollution abatement is:
A. increasing
B. decreasing
C. decreasing and then increasing
D. constant
Answer: A
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Throughout U.S. history, entrepreneurial activity would occur when
(a) centralized economic planning was involved (b) distributed rights to profits were clear and protected (c) government intervention was pervasive (d) all of the above
Incomes policies of the federal government include:
a. presidential jawboning. b. wage-price guidelines. c. wage-price controls. d. All of these.
A bank currently has checkable deposits of $100,000 . total reserves of $30,000 . and loans of $70,000 . If the required reserve ratio is lowered from 20 percent to 15 percent, this bank can increase its loans by:
a. $10,000. b. $15,000. c. $75,000. d. $5,000. e. $0.
The Fed is not owned by the government
Indicate whether the statement is true or false