The Lorenz curve showing perfect income equality would be
A. I.
B. J.
C. K.
D. L.
B. J.
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It is possible that a voucher program could erode the public nature of public schools, effectively turning all schools into private schools
a. True b. False
Libertarians believe that
a. it is more important to evaluate the process by which economic outcomes are produced than the outcomes themselves. b. government should attempt to redistribute income from the rich to the poor when the gap between rich and poor is more than 20%. c. equality of income is more important than equality of opportunity. d. it is more important to evaluate economic outcomes first and then the process that produced them.
Consider the production possibilities curve [PPC] for a country producing only cheese and wine. The first few resources transferred from cheese to wine production are:
a. those that are most specialized in cheese production.
b. those that are most specialized in wine production.
c. those that are least specialized in cheese production.
d. those that are neither specialized in cheese nor wine production.
e. those that are highly specialized in both cheese and wine production.
Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Firm X ($/day)$500$514$530$555$585Cost to Firm Y ($/day)$400$420$445$480$520Cost to Firm Z ($/day)$300$325$360$400$550 Suppose the government decides to impose a tax on each ton of smoke emitted. What would be the lowest tax, in whole dollars, that would reduce emissions to 6 tons per day?
A. $41 per ton B. $36 per ton C. $26 per ton D. $21 per ton