With fixed exchange rates, fiscal policy is more powerful with a high degree of capital mobility than with a low degree of capital mobility.
Answer the following statement true (T) or false (F)
True
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Suppose that the government allocates the abatement responsibility uniformly, requiring each polluter to abate 10 units of pollution. Quantitatively assess the cost implications.
Assume that there are two firms, each emitting 20 units of pollutants into the environment, for a total of 40 units in their region. The government sets an aggregate abatement standard (AST) of 20 units. The polluters' cost functions are as follows, where the dollar values are in thousands: Polluter 1: TAC1 = 10 + 0.75(A1)2, Polluter 2: TAC2 = 5 + 0.5(A2)2, MAC1 = 1.5A1, MAC2 = A2.
A simple deposit multiplier equal to one implies a required reserve ratio equal to
A) 100 percent. B) 50 percent. C) 25 percent. D) 0 percent.
An individual is induced to change his/her occupation if:
a. the sunk cost of the current occupation is high. b. the expected net gains from the alternative occupation is negative. c. the outlook for future income, in the current occupation, increases. d. he/she has devoted a lot of money, time and effort in the current occupation. e. the marginal cost of remaining in the current occupation is very high.
Which of the following is the best example of a variable cost for a major league baseball franchise?
(A) Stadium rent (B) Stadium maintenance (C) Ticket-takers' salaries (D) Manager's salary