Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, how much will each type B individual contribute in total?
a. 1875
b. 1500
c. 875
d. 625
d
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Refer to Table 19-12. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is
A) 2013. B) 2014. C) 2015. D) 2016.
A learning curve may be expressed as a relationship between the labor per unit (L) and the cumulative number of units produced (N)
Which of the following learning curves exhibits a faster reduction in cost of production due to learning, (1 ) L = 10 + N-1 or (2 ) L = 10 + N-0.5? A) Learning curve (1 ) B) Learning curve (2 ) C) Curves (1 ) and (2 ) exhibit the same rate. D) We cannot determine the rate of cost reduction without knowing the value of N.
Which of the following statements best describes production outcomes in the Soviet Union and pre-reform China?
A. Output was often high quality but insufficient in quantity because production managers were rewarded only for meeting quality standards. B. Output was generally high quality and sufficient in quantity because of the well-specified economic plans. C. Output was often low quality because production managers were rewarded only for meeting quantitative production targets. D. Output was of variable quality but sufficient in quantity because market signals were only consistent in telling managers how much to produce.
A variable measures:
A. something that always has the same value. B. something that can take on different values. C. factors that occur with high degrees of uncertainty. D. the degree to which something varies over time.