Tradable allowances are like quotas in that they both:
A. reduce the quantity bought and sold to the efficient level.
B. maximize surplus.
C. are efficient.
D. All of these statements are true.
A. reduce the quantity bought and sold to the efficient level.
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Christy is a telemarketer. She estimates that this summer, she has a 0.2 probability of earning $10,000, a 0.5 probability of earning $5,000, and a 0.3 probability of earning only $1,000. What is Christy's expected income?
A) $7,256 B) $5,333 C) $4,800 D) $4,000
An increase in shipments of currency from the Federal Reserve to commercial banks will
A) increase the money supply. B) increase bank reserves. C) reduce bank reserves. D) have no effect on bank reserves.
In reality, decisions made by firms may not always produce maximum total profit because some executives
A. are more motivated by altruism. B. are more interested in market share than profits. C. may push research and development to the point that profits decline. D. All of the responses are correct.
According to supply-side theory, which of the following would shift the aggregate supply curve leftward?
A. Lower marginal tax rates. B. An increase in the money supply. C. Government deregulation. D. An increase in unemployment and welfare benefits.