At a corner solution, which of the following is know to be true?
a. The slope of the indifference curve equals the slope of the budget line.
b. The slope of the indifference curve is greater than the slope of the budget line.
c. The slope of the indifference curve is less than the slope of the budget line.
d. The slope of the indifference curve does not equal the slope of the budget line.
d. The slope of the indifference curve does not equal the slope of the budget line.
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Union wages in the United States are, on average,
a. equal to nonunion wages b. twice as high as nonunion wages c. half of nonunion wages d. 15 percent higher than nonunion wages e. 50 percent higher than nonunion wages
Which of the following groups would have the highest unemployment rates?
a. married men b. white workers c. college graduates d. teenagers
Why is monetary policy more effective in an open economy than in a closed economy?
A. Trade deficits affect exchange rates, which can offset adverse interest rate effects. B. Borrowers can choose to use foreign capital, so that interest rate effects are stronger than expected. C. Interest rate changes affect exchange rates, so that capital flows reinforce the effect of monetary policy. D. Banks can choose to lend to foreigners, so that interest rate effects are essentially nullified.
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$10,000$12,000911,00017,000813,00022,000716,00026,000620,00033,000Table 16.4Table 16.4 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If Firm A contemplates selling a second permit to Firm B, what is Firm A's willingness to accept?
A. $2,000 B. $3,000 C. $4,000 D. $5,000