Suppose that recycling rubber for sneakers creates an external benefit of $2.00 per ton of rubber. There are no external costs. The efficient amount of rubber will be recycled when the government creates a
A) subsidy of more than $2.00 per ton of rubber.
B) subsidy of $2.00 per ton of rubber.
C) tax of more than $2.00 per ton of rubber.
D) tax of $2.00 per ton of rubber.
B
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The commercial banks in Lendland have
Reserves $400 million Loans $3,600 million Deposits $4,000 million Total assets $4,600 million The banks hold no excess reserves. a) Calculate the banks' reserve ratio. b) An immigrant arrives in Lendland with $5 million, which he deposits in a bank. How much does the immigrant's bank lend initially?
Proved reserves of natural gas and oil
a. will last only another five years at the current worldwide consumption rate. b. reveal little about whether the world is about to run out of these resources since they are calculated at present levels of price and technology. c. are just another way of measuring how many years civilization will continue. d. indicate that the supply of petroleum will be depleted by the year 2020 unless governments adopt price controls and energy rationing.
If the absolute price of a car is $20,000 and the relative price of a computer is 20 cars, it follows that the absolute price of a car is
a. $400. b. $4,000. c. $100. d. $1,000.
In the long run, AS is vertical.
a. true b. false