In economics, abstraction from reality is necessary because of the complexity of the real world.
Answer the following statement true (T) or false (F)
True
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An essential characteristic of credit unions is that
A) they are typically large. B) branching across state lines is prohibited. C) their lending is primarily for mortgage loans. D) they are organized for individuals with a common bond.
An increase in output will tend to
a. increase productivity in the economy as a whole b. reduce prices of non-labor inputs and other commodities in limited supply in the short run c. increase real wage rates d. increase nominal wage rates e. decrease the price level
When other nations Orient “dump” products on the U.S. market, they
A. sell at prices that do not cover costs of production. B. sell at prices lower than prices charged to their own domestic customers. C. expect the United States to help pay any industrialists’ losses. D. All of the above are true.
The following table shows four firms, the amount each pollutes, the marginal cost for each firm to clean up pollution, and the total cost to each firm of eliminating all pollution.FirmTotal Discharge (in tons)Marginal Cost of Cleanup(per ton)Total Cost of CleanupA60$5.00$300B70$8.00$560C80$7.50$600D90$4.00$360The total discharge of these four companies is 300 tons. Assume there is no one else who pollutes. Suppose that the government gives each company a pollution permit equal to 50 percent of its present discharge. However, companies are allowed to reduce pollution more than 50 percent and sell their permit or reduce less than 50 percent and buy a permit from another company. If firms maximize profits, what would happen?
A. Each firm would reduce pollution by 50 percent. B. Firms A and D would eliminate pollution and sell their permits with a reasonable price to B and C, which would continue to pollute as before. C. Firms B and C would eliminate pollution and sell their permits with a reasonable price to A and D, which would continue to pollute as before. D. There is not enough information to answer this question.