Two firms, Kegareta Inc. and Sucio Enterprises, have access to five production processes, each one of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the accompanying table. ABCDE 4 tons/day3 tons/day2 tons/day1 tons/day0 tons/dayKegareta Inc.$40$85$135$190$250Sucio Enterprises$120$175$250$345$460 Suppose the government wants to reduce pollution by 50 percent by imposing a tax of $T per day on each ton of smoke emitted. Of the options listed, what's the smallest tax, $T, that will achieve this goal?
A. $51
B. $61
C. $56
D. $54
Answer: C
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The relationship between the unemployment rate and inflation is studied under:
A) microeconomics. B) macroeconomics. C) behavioral economics. D) international economics.
Tasha decides that when homes in her neighborhood are selling for $150,000 she will not sell her home. When average prices rise to $175,000, she decides that she will put her home on the market. This is an example of:
a. market demand. b. market-day supply. c. an excess supply of homes. d. a positively-sloped supply curve. e. a negatively-sloped supply curve.
If you were to invest $10,000 for two years and the interest rates for each of those years are 4.5% and 4.65% respectively, how much interest would you earn from the end of year one until the end of year two? Assume interest compounds annually.
What will be an ideal response?
Two car dealers have lots across the street from each other. Frank decides that he is going to raise his prices. Sandra decides to drop her prices. Which of the following scenarios is one in which Frank could make money?
a. Customers assume that higher prices mean more inventory. b. Sandra’s prices are lower than Frank’s. c. Another dealer has lower prices than both Sandra and Frank. d. Customers assume that higher-priced cars must be of higher quality.