John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the accompanying table.Time cleaning windows (hours/day)Total number of windows cleaned0017211314416517 What is the lowest price per window that John would be willing to accept to spend 4 hours per day cleaning windows?
A. $3.50
B. $7
C. $2
D. $11
Answer: A
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A) greater; greater B) greater; smaller C) smaller; smaller D) smaller; greater
Which of the following is an advantage to the pollution-rights approach to environmental quality?
A. Polluters are compelled to clean up completely. B. Polluters have appropriate incentives to clean up. C. This is a method of direct government regulation. D. Compliance with legal guidelines is discretionary.
Subtract the subsidy from the minimum supply price
What will be an ideal response?
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A. $5 B. $4 C. $2.50 D. $20 E. $40