A firm that generates pollution is illustrated in Figure 9.7. 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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Keynes referred to the emotions that shift supply and demand as ________.
A. preferences B. austerity measures C. animal spirits D. speculative bubbles
According to the saving and investment equation, if net foreign investment rises by $60 million
A) national saving will fall by $60 million. B) private saving will fall by $60 million. C) national saving will increase by $60 million. D) domestic investment will rise by $60 million.
The Solow residual is a measure of
A) average labor productivity. B) average capital productivity. C) total factor productivity. D) the rate of growth of real GDP.
Which of the following represents a perfectly competitive farmer's demand curve for hired hands?
a. her ATC curve b. her AVC curve c. her MRP curve d. her MRC curve e. her AFC curve