A tax levied on coal-fired plants that is based on the amount of carbon released in the atmosphere is considered by the firm as a:

A. variable cost.
B. fixed cost.
C. source of revenue.
D. sunk cost.


Answer: A

Economics

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Because leisure is a normal good, an increase in the wage rate will result in

A) an increase in the quantity of labor supplied because of the substitution effect. At low wages the income effect causes an increase in the quantity of labor supplied, but at high wages the income effect causes a decrease in the quantity of labor supplied as the wage rises. B) an increase in the quantity of labor supplied because of both the substitution effect and the income effect. C) a decrease in the quantity of labor supplied because of the substitution effect and an increase in the quantity of labor supplied because of the income effect. D) an increase in the quantity of labor supplied because of the substitution effect and a decrease in the quantity of labor supplied because of the income effect.

Economics

One of the merits of plurality voting is:

A. it produces a result that most participants are happy with. B. its simplicity. C. it guarantees the best option will win. D. it has all four criteria for an ideal voting system.

Economics

If the marginal social benefit of consuming a product exceeds the marginal social cost of producing it, social welfare is

a. increased by reducing output b. decreased by expanding output c. unchanged by expanding or reducing output d. increased by expanding output e. maximized

Economics

Last year the exchange rate between U.S. dollars and Mexican pesos was 10 pesos per dollar. Today is it 11 pesos per dollar. Here, the dollar ________ against the peso, and the peso ________ against the dollar

A) appreciated; depreciated B) depreciated; appreciated C) appreciated; appreciated D) depreciated; depreciated

Economics