To correct for the externalities, the revenue generated by a corrective tax on steel producers would most likely be used to ______.
a. help the company pay for internalizing the cost
b. compensate those harmed by pollution
c. expand the firm’s production output
d. help lower the market price for consumers
b. compensate those harmed by pollution
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If a project costs $3,500 today and pays a return of $4,200 next year, what is the highest interest rate at which the project should be undertaken?
A) 7 percent B) 14 percent C) 20 percent D) 70 percent
To say that the housing market is in equilibrium means that
a. there are no vacant houses b. the number of houses that are being constructed is equal to the housing stock c. the number of houses that are currently empty is equal to the number of households currently looking to buy a house d. the quantity demanded of houses is equal to the number of houses currently under construction e. the number of houses that people want to own is equal to the housing stock
If a union raises the wage in its industry above equilibrium then employment in that industry
a. and non-unionized industries falls. b. falls and employment in non-unionized industries rises. c. rises and falls in non-unionized industries. d. and non-unionized industries rises.
Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. AC represents Tom's budget constraint. Point D then represents a point that is
A. available, but at which he does not spend all his income. B. not available because it represents a combination of hamburgers and hot dogs that he cannot purchase with his income. C. an available option, as Tom is just spending all of his income. D. in his opportunity set but not on his budget constraint.