If the wage rates in Canada are lower than in the United States,
a. workers in the United States will want to go to Canada and Canadian businesses will want to locate in the United States
b. workers in Canada will want to go to the United States and businesses in the United States will want to locate in Canada
c. unfair international competition is taking place
d. goods will be more expensive in Canada
e. the wage differentials will become wider over time
B
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Fred has decided to buy a burger and fries at a restaurant, but is considering whether to buy a drink as well. If the price of a burger is $3, fries are $2, and drinks are $1, but a value meal with all three costs $4.80, the marginal cost to Ted of the drink is:
a. $-0.20 b. $0.20 c. $0.80 d. $1.00
The estimated incremental benefits (in thousands of dollars) associated with this new policy are
A collaborative federal and state program has been proposed in response to acid rain damagein Newport Bay, Maryland. To estimate the incremental benefits of the program, you use thetravel cost methodbasedupon the following pre- and post-policy recreational demand functions: Pre-policy: P = 62 – 0.02V1 Post-policy: P = 80 – 0.02V2, where V is the number of visitors (in thousands) and P is the admission fee. Assume the admission fee is set at $20 per visitor. a. 2,100 b. 44,100 c. 90,000 d. 45,900
Allocative efficiency requires that
a. MC equals ATC. b. MC equals P. c. AR equals AFC. d. MC equals MR.
Which of the following are TRUE concerning the distinction between interest rates and returns?
A) The rate of return on a bond will not necessarily equal the interest rate on that bond. B) The return can be expressed as the difference between the current yield and the rate of capital gains. C) The rate of return will be greater than the interest rate when the price of the bond falls during the holding period. D) The return can be expressed as the sum of the discount yield and the rate of capital gains.