A metal refining plant emits sulfur dioxide into the air and has decided to install air scrubbers to reduce the amount of pollution. Each scrubber costs $180,000 and the Environmental Protection Agency (EPA) fines the plant $5,000 for every part of pollution emitted per million.
Based on the information above, how many air scrubbers should the plant install in order to minimize the total cost of pollution?
A. 1
B. 2
C. 3
D. 4
E. 5
Answer: B
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Which of the following statements is true?
A) Lower wages are normally offered for jobs with better amenities. B) Jobs that are relatively risky pay a lower wage than other safer jobs. C) Educational qualifications and wage rates are negatively correlated. D) Incentives are normally higher for desirable occupations in comparison to undesirable occupations.
The table above shows the marginal benefit from pizza and the marginal cost of pizza in cans of soda forgone. The allocatively efficient quantity of pizza is ________ pizzas per day
A) 70 B) 10 C) more than 70 D) 40
The latest news report stated that the housing market is making a comeback and that house prices are on the rise. This information is likely to:
A. increase demand for houses now due to a change in expectations of future prices. B. decrease demand for houses now due to a change in expectations of future prices. C. have no effect on the current housing market, but will increase demand in the future. D. have no effect on the current demand for housing, but will decrease current supply.
The predecessor to the AFL was the ___________.
Fill in the blank(s) with the appropriate word(s).