Denise is thinking about setting up a butterfly garden in her backyard. She estimates that it will cost her $2,000 to purchase and install special plants and an irrigation system to attract butterflies. The benefit she expects to receive is $1,800 . In addition, neighbor Billy will receive a benefit of $150 and neighbor Sammy will receive a benefit of $100 . From this, we can conclude that:
a. butterflies are a negative externality for Billy and Sammy.
b. Denise will set up the butterfly garden without any help from her free-rider neighbors.
c. if Sammy refuses to contribute to the butterfly garden, he will be unable to enjoy its benefits if it is built.
d. if Billy refuses to contribute to the butterfly garden, Denise will not have one.
e. if Billy and Sammy contribute the amounts at which they value the butterfly garden, Denise will set it up.
e
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Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the table below.Number ofMugs Per DayTotal CostPer Day0$101$142$193$254$325$406$49The marginal cost if the 4th mug per day is ________.
A. $7 B. $5 C. $8 D. $32
There are a limited number of original Picasso paintings. This means that the supply of original Picasso paintings is perfectly elastic
Indicate whether the statement is true or false
The Trump administration's policies to increase labor productivity growth include all of the following except
A) reducing business taxes. B) reducing regulations on small businesses. C) increasing infrastructure spending. D) raising the federal minimum wage.
The basic money supply:
A. Is controlled by Congress and the U.S. Treasury. B. Includes savings accounts. C. Includes currency and transactions accounts. D. Includes money market mutual funds.