Which of the following goods would have the smallest elasticity of demand?
A) Exxon brand premium unleaded gasoline
B) insulin sold to diabetics
C) an education at Harvard Law School sold to recent college graduates
D) a bottle of Bayer Aspirin sold to someone without a headache
B
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Which of the following is not included in GDP as part of government services?
A.) Social Security benefits. B.) Military equipment. C.) Highways and bridges. D.) Education.
Which statement is true given the total cost function: Total cost = 10Q + 5Q2 + 100?
A. Total cost at Q = 4 is 120 B. Average total cost at Q = 10 is 70 C. Total cost at Q = 5 is 175 D. Average fixed cost is zero at Q = 100
When the government's outlays equal its tax revenue, the budget
A) has a deficit and the national debt is increasing. B) has a deficit and the national debt is decreasing. C) is balanced and the national debt is not changing. D) has a surplus and the national debt is decreasing. E) has a surplus and the national debt is increasing.
What is the rationale behind a marketable emission allowance scheme?
A) to discipline polluting firms by specifying the maximum amount of emissions allowed and giving them permits to pollute up to their allowance B) to provide firms with the incentive to consider less costly alternatives to pollution reduction by making firms pay for the right to pollute beyond their specified allowance C) to raise revenue for the government through the sale of emission permits and at the same time set an emissions target D) to create a market for externalities: the scheme brings together buyers and sellers of marketable permits