Which one of the following will shift the consumption function downward?
A. an increase in disposable income
B. a decrease in disposable income
C. legislation making credit harder to obtain
D. lower tax rates
Answer: C
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"Dad said he'd pay for my education whether I go to State or to Ivy College. So I chose Ivy College, even though it'll cost him $15,000 more in tuition each year!" Pick the correct statement:
A) Her opportunity cost is $15,000 each year. B) Her opportunity cost is the satisfaction she would have experienced at State. C) Whether she realizes it or not, her opportunity cost is infinite, just like her dad's love is infinite. D) She has no opportunity cost, because her dad will pay for her education.
Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. The government issues two pollution permits to each firm. Firm C will pay up to __________ to buy a permit from Firm A or B.
A. $2,200 B. $1,000 C. $600 D. $500
Suppose the supply of textbooks is upward sloping and shifts leftward due to higher ink and paper costs. Which of the following events would leave the equilibrium price of textbooks at the same level observed before the supply shift?
A) Demand is perfectly elastic (horizontal). B) Demand is downward sloping and shifts leftward. C) all of the above D) none of the above
An externality that is not fully paid by the individual using an automobile is
A) insurance for the vehicle. B) gasoline for the vehicle. C) air pollution from the vehicle. D) operation of the vehicle.