The pollution tax in Figure 9.10:
A. reduces equilibrium output.
B. reduces pollution associated with the production of the good.
C. raises equilibrium price.
D. All of these
Answer: D
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Suppose a budget line is drawn between pizza, on the horizontal axis, and tacos, on the vertical axis. How does a change in the price of a pizza affect the budget line?
What will be an ideal response?
A straight-line production possibilities curve has
A) an increasing opportunity cost between the two goods. B) a decreasing opportunity cost between the two goods. C) a constant opportunity cost between the two goods. D) no opportunity cost between the two goods.
When there are diseconomies of scale in production:
a. long-run average total cost declines as output expands. b. long-run average total cost increases as output expands. c. average fixed cost increases as output expands d. marginal cost decreases as output expands.
Repurchase agreements are usually used by banks that:
A. cannot obtain financing from any other source. B. need cash for a very short period of time. C. have negative net worth. D. have a need for long-term financing.