Figure 16.1A firm that generates pollution is illustrated in Figure 16.1. If the government imposes a pollution tax equal to P3, the firm's abatement choice will be:
A. A1.
B. A2.
C. A3.
D. less than A1.
Answer: C
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Suppose the two countries can trade shares in the ownership of their perspective assets. Further, assume that a Home owner of a 10 percent share in Foreign land
He will receive 10 percent share in Foreign land, and thus receives 10 percent of the annual Foreign kiwi fruit harvest. Further assume that a Foreign owner of a 10 percent share in Home land is permitted. In this case, a Foreigner is entitled to 10 percent of the Home harvest. Calculate the expected value of kiwi fruit for each investor. Is the investor better off?
The payment of a given sum of money each year that continues indefinitely into the future is known as
a. a perpetuity b. a lottery c. a term payment d. a permanent annuity e. an indefinite annuity
Which statement is the most accurate?
A. Usury laws may hurt the very people they are intended to help by creating a shortage of loanable funds. B. Usury laws, which were enacted in biblical times, were abolished by the Middle Ages. C. Usury laws are opposed by most borrowers. D. Usury laws help enforce the law of supply and demand.
Figure 11-3
In Figure 11-3, which line represents the change in the consumption schedule caused by an increase in the residential property tax?
a.
C1 in graph (a)
b.
C2 in graph (a)
c.
C1 in graph (b)
d.
C2 in graph (b)