The optimal size of a club that shares a public good _____
a. gets smaller if external costs decline
b. gets larger if external costs decline
c. gets smaller if congestion costs decline
d. gets larger if congestion costs decline
d
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Sherri lives in Canada and is considering buying a new sofa. If the price level in Canada falls and the price level in the United States does not change, Canadian manufactured sofas are relatively
A) less expensive, so Sherri will likely purchase a U.S. manufactured sofa. B) less expensive, so Sherri will likely purchase a Canadian manufactured sofa. C) more expensive, so Sherri will likely purchase a U.S. manufactured sofa. D) more expensive, so Sherri will likely purchase a Canadian manufactured sofa. E) Both answers B and D could be correct depending on whether U.S. manufactured sofas were initially more expensive or less expensive than Canadian sofas.
The proposed GHG controls on stationary sources in the United States
a. recommends the use of permits with no emissions standards b. involve subsidies for the development of new abatement technologies c. include permitting requirements and emissions standards d. recommend significant monetary penalties on power plants releasing GHGs
If on Tuesday you can buy 125 yen per U.S. dollar and on Wednesday you can buy 120 yen per U.S. dollar,
a. both the U.S. dollar and the yen have appreciated. b. both the U.S. dollar and the yen have depreciated. c. the U.S. dollar has appreciated and the yen has depreciated. d. the U.S. dollar has depreciated and the yen has appreciated.
Subsidies are most likely to:
A. increase total economic surplus. B. reduce consumer surplus. C. reduce total economic surplus. D. leave total economic surplus unchanged, but transfer surplus from producers to consumers.