If the price of parsley is $1, and the price remains unchanged no matter how much parsley is produced, then the AR curve
a. is an upward-sloping straight line
b. is a downward-sloping straight line
c. lies above the MR curve
d. lies below the MR curve
e. is a horizontal line
E
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As the economy enters a strong expansion in which real GDP increases, which of the following occurs?
A) The demand for money decreases and there is a movement upward along the demand for money curve. B) The demand for money increases and there is a movement downward along the demand for money curve. C) The demand for money curve shifts rightward. D) The nominal interest rate falls as the demand for money curve shifts leftward. E) The demand for money curve shifts leftward.
What is a cap-and-trade policy? (Be certain to mention marketable permits.) Suppose there are two firms in an area, each emitting tons of sulfur
The government decides on a target level of 200 tons of sulfur, and gives each firm a permit to emit 100 tons of sulfur. Suppose Firm A is very efficient and can reduce pollution by 100 tons with an abatement cost of $500. Firm B has an older plant, so it will cost Firm B $1,000 to reduce emissions by 100 tons. What will occur with marketable permits?
Suppose you inherit an orange orchard and it generates an annual return of $16,000 . You want to sell it. The interest rate is 8 percent. If the government imposed an interest rate ceiling at 10 percent, the ceiling would cause the price of your orchard to
a. go down b. go up c. stay the same d. be irrelevant because you would be unable to sell the orchard at any price when the price ceiling is higher than the interest rate e. not enough information given
Discuss the merits and demerits of GDP as a measure of the economy’s output performance and as a measure of its standard of living
What will be an ideal response?