Suppose that 10,000 people are willing to spend a maximum of $20 each to preserve one acre of rainforest. A conservation group mails out a request to each person asking him or her to mail in $40 to preserve one acre of rainforest. How many acres of rainforest will be preserved with this program?
a. Zero acres
b. 1,000 acres
c. 5,000 acres
d. 10,000 acres
e. There is not enough information to answer the question
Answer: Zero acres
You might also like to view...
Money income is
A) market income plus cash payments from government. B) equal to market income. C) market income plus cash payments from government minus taxes. D) market income minus taxes.
Refer to the Article Summary. Assume countries initially enacted protectionist measures against Chinese steel imports. If these protectionist measures were eventually eliminated, then all else equal, the price of steel in those countries would ________ and the quantity of steel demanded in those countries would ________.
A) decrease; decrease B) increase; decrease C) decrease; increase D) increase; increase
Reserves equal
A) deposits with the Fed plus holdings of U.S. government securities. B) currency in circulation plus vault cash. C) deposits with the Fed plus vault cash. D) currency outstanding plus currency in circulation.
The marginal propensity to consume is
A. disposable income divided by consumption. B. the change in consumption divided by the change in disposable income. C. consumption divided by disposable income. D. the change in disposable income divided by the change in consumption.