From 1998 to 2010, the cost of building a nuclear plant increased from $3 billion to $10 billion. If the marginal cost of producing electricity stays the same, then the average variable cost of producing electricity ________ while the average total cost of producing electricity ________.
A. stays the same; increases
B. decreases; stays the same
C. increases; stays the same
D. decreases; increases
Answer: A
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There are two industries that emit sulfur dioxide. The government decides to use a cap-and-trade policy by issuing permits for pollution. If Harry's industry has a higher marginal cost of reducing sulfur dioxide than does Joe's industry, ________
A) the cap-and-trade policy will not make the amount of pollution efficient B) Joe's industry will sell permits to Harry's industry C) Harry's industry will sell permits to Joe's industry D) Harry's industry and Joe's industry will emit the same quantity of sulfur dioxide
The demand curve that an individual competitive firm faces is known as its
A) excess demand curve. B) market demand curve. C) residual demand curve. D) leftover demand curve.
In Plessy v. Ferguson, the Supreme Court condoned separate but equal education
Indicate whether the statement is true or false
Jake experiences an increase in his wages. The hours of labor that he supplies to the market would decrease if
a. the income effect is larger than the substitution effect. b. the substitution effect is larger than the income effect. c. neither the income effect nor the substitution effect apply to Harry's labor-leisure tradeoff. d. Jake views both labor and leisure as inferior goods.