A carbon tax placed on coal would:
A. raise the costs of goods produced using coal, raising their price, and thus decreasing the quantity demanded of these goods.
B. not affect emissions of greenhouse gases.
C. shift the demand curve for coal to the right.
D. make coal a more attractive form of energy.
Answer: A
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Jim, an avid biker, broke his leg last year and will never be able to use his bike again. He was offered $100 for it last year, but Jim refused to sell it, insisting it was worth more. A year later, he's offered only $75 for it, but Jim still refuses to sell it. Jim's behavior could be explained by:
A. substitution effect. B. limited processing power. C. the endowment effect. D. status quo bias.
GM decides to build a new plant using retained earnings. All of the following are true except
A. GM is engaging in saving on behalf of its shareholders. B. GM stock appreciates in value. C. GM's tangible capital will increase as a result. D. GM is avoiding experiencing opportunity costs.
It would be inefficient to break up a ________ monopoly.
A. natural B. cartelized C. price?fixing D. government created
Refer to the figure above. How many units of Good Y will be supplied if the market is free?
A) 9 million B) 16 million C) 13 million D) 20 million