If the marginal benefit from water pollution abatement increases, then it is efficient to:
A. reduce water pollution to zero.
B. allow more water pollution.
C. let the market determine water pollution
D. reduce water pollution further, but maybe not to zero.
Answer: D
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Refer to Table 13-9. Suppose that the data in the table above reflects the price levels in the economy. Given that data, we can say that the cost of living rose by ________ between 2012 and 2013?
a. 2%
b. 5%
?. 8%
d. 11%
e. 13%
Willingness to pay measures
A) the maximum price that a buyer is willing to pay for a good or service. B) the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept for the good. C) the maximum price a buyer is willing to pay minus the minimum price a seller is willing to accept. D) the maximum price a buyer is willing to pay for a product minus the amount the buyer actually pays for it.
When the Gizmo Company could sell a gizmo for $10, it produced 2,500 per month. More recently, the price of a gizmo has fallen to $9 and so Gizmo is only producing 2,000 units per month. What is the price elasticity of supply for gizmos?
A) 0.47 B) -0.47 C) -2.11 D) 2.11
If Jen earns $80,000 a year and pays $16,000 in taxes, and Gary earns $100,000 a year and pays $16,000 a year in taxes, the tax system must be:
A. flat. B. proportional. C. progressive. D. lump-sum.