If the economy is in a recessionary gap and the government attempts to balance the budget, the effect will be to
A. counteract the recession.
B. worsen and prolong the recession.
C. end the recession sooner.
D. increase the level of real GDP.
Answer: B
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Assuming that the marginal social benefit (MSB) of environmental quality is known, then
a. theMSB represents the demand for environmental quality b. total social benefits (TSB) of abatement, A1, can be captured as an area under the MSB up to A1 c. incremental benefits are measured as an area under the MSB between the pre- and post-policy abatement levels d. all of the above e. none of the above
Which of the following is a reason why some firms do not use commission pay?
A) The best workers stay and less productive workers leave. B) It is difficult to measure the output and attribute output to a particular worker. C) It gives workers incentive to produce more. D) It increases firm profits.
Refer to the graph below. Assume the consumer has an income of $100, the price of X is $2 and the price of Y is $1. According to the graph below, the total effect of a decrease in the price of X from $2 to $1 is equal to: 
A. 25 B. 20 C. 30 D. 5
The top four firms in the industry have 10 percent, 8 percent, 8 percent, and 6 percent of the market. The four-firm concentration ratio of this market is:
A. 32. B. 8. C. 66. D. 264.