Suppose the Clean Air Act calls for a rise in NO2 abatement (A) from 50 to 60 percent and that the MSC (in millions) is MSC = 12 + 0.8A, where A is measured in percent. Then, the incremental cost of this policy change is
a. $8 million c. $560 million
b. $40 million d. $500 million
c. $560 million
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Suppose consumers save 8 percent of their incomes. If the government collects 4 dollar in taxes from each taxpayer and invested it in infrastructure, total social investment will ________ per taxpayer
A) increase by 32 cents B) increase by $ 4.32 C) increase by $3.68 D) decrease by 64 cents
The demand for loanable funds includes demand for
i. loans. ii. stocks. iii. bonds. A) ii and iii B) i and ii C) i, ii and iii D) iii only E) i only
Which of the following is true of a typical firm in a monopolistically competitive industry?
A) All firms have identical cost structures. B) Product differentiation allows a successful firm to emerge as a market leader in the industry. C) Each firm acts independently. D) The more successful firms have an incentive to merge in order to exert greater market power.
If income doubles and the quantity demanded of good x more than doubles, then good x can be described as a:
a. substitute good. b. complement good. c. necessity. d. luxury.