Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Firm X ($/day) $500$514$530$555$585 Cost to Firm Y ($/day) $400$420$445$480 $520Cost to Firm z ($/day) $300$325$360$400 $550Suppose the government decides to impose a tax on each ton of smoke emitted. What would be the lowest tax, in whole dollars, that would reduce emissions to 6 tons per day?
A. $36 per ton
B. $21 per ton
C. $26 per ton
D. $41 per ton
Answer: C
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Which of the following statements is correct with respect to endogenous growth models?
a. Changes in government policy that affect savings and investment rates can increase levels of output in the long-run. b. Changes in government policy that affect savings and investment rates can increase the growth rate of output in the long-run. c. Long-run growth rates are not stationary. d. both a and b. e. all of the above.
Which of the following moral theories considers the action resulting in the greatest benefit to all people as the most moral action?
a. act utilitarianism b. rule utilitarianism c. relativism d. deontology
Refer to the figure below:
Let supply remain constant at S; a decrease in income causes consumers to be willing and able to purchase 150 fewer units at each price than they were previously.
A. The new equilibrium price and quantity will be P = $7 and Q = 250. B. The new equilibrium price and quantity will be P = $6 and Q = 150. C. The new equilibrium price and quantity will be P = $5 and Q = 200. D. The new equilibrium price and quantity will be P = $5 and Q = 150.
Supply-side economists favor tax incentives that
A. Reduce the level of investment. B. Encourage saving. C. Increase the risk incurred by entrepreneurs. D. Discourage infrastructure development.