Refer to Figure 4-5. What area represents the deadweight loss after the imposition of the ceiling?
A) C + E + J + H B) C + E C) G + H D) J + H
B
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Incremental costs
a. are the total costs of abatement and regulation linked to environmental policy b. include only explicit costs c. refer to the change in costs associated with an environmental policy initiative d. include only implicit costs
On a typical acre of land, Iowa can produce either 300 pounds of beef or 100 pounds of soybeans in a year. On a typical acre of land, Nebraska can produce 150 pounds of beef or 200 pounds of soybeans. Which of the following is correct?
A) Nebraska should produce soybeans because its opportunity cost of soybeans is lower. B) Iowa should produce soybeans because its opportunity cost of soybeans is higher. C) Iowa should produce soybeans because its opportunity cost of soybeans is lower. D) Nebraska and Iowa should divide each acre evenly between soybean and beef production. E) Nebraska should produce soybeans because its opportunity cost of soybeans is higher.
Which of the following is an example of a factor of production?
A) Land B) Cell phones C) Canned soup D) Television sets
Which of the following is not a potential problem associated with government debt?
a. redistribution of income b. promotes underconsumption c. creates inflation d. promotes undersaving e. leads to less private investment