Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below. Process(smoke/day) A(10 tons/day) B(8 tons/day) C(6 tons/day) D(4 ton/day) E(2 tons/day) Cost to Acme ($/day) $750$800$1,000$1,400$2,000 Cost to FirmCo ($/day) $500$750$1,200$2,200 $4,000Suppose the firms are both currently using process A. If the government requires each firm to reduce pollution by 20%, then the total cost to society of this policy will be ________ per day.
A. $1,550
B. $2,350
C. $950
D. $300
Answer: D
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The decrease in consumer spending that occurred after the collapse of the housing bubble caused aggregate:
A. demand to increase. B. demand to decrease. C. supply to increase. D. supply to decrease.
Most of the countries in the world suffered long and deep losses of output and employment between 1930 and 1935, which in turn meant fewer purchases of U.S. goods and services. Which of the following indicates the appropriate change in the U.S. economy?
A. Aggregate demand shifted to the left B. Aggregate demand shifted to the right C. The economy moved up along the aggregate demand curve D. The economy moved down along the aggregate demand curve
Refer to Table 9-2. In Year 2, if savings deposits had been $250 billion instead of $200 billion, M2 would have been
A) $575 billion. B) larger by $50 billion. C) smaller by $50 billion. D) unaffected.
Congress passed the Clean Air Act in 1970. Since this act was passed, emissions of the six main air pollutants
A) have increased significantly due to the growth of the U.S. economy. B) cannot be measured since Congress failed to appropriate money to monitor the level of emissions. C) have fallen by more than one-half. D) have remained essentially constant, even though significant economic growth has occurred in the United States since 1970.