Suppose the Environmental Protection Administration (EPA) proposes a change in automobile exhaust systems that reduces the amount of greenhouse gases (GHGs) emitted into the atmosphere, and they estimate that the net present value (NPV) of this
policy change is worth $3 trillion dollars. To form this estimate, the EPA staff members assumed a particular social discount rate and a particular stock dissipation rate for GHGs. What happens to the NPV of this proposed policy if the staff members use a smaller stock dissipation rate? A) NPV increases
B) NPV declines
C) NPV remains unchanged
D) We do not have enough information to answer this question
A
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A firm's markup over its marginal cost is greater:
A. the more elastic is the demand curve. B. the less elastic is the demand curve. C. the lower its fixed costs. D. the lower its average costs.
For which of the following commodities are consumers usually willing to pay a premium to save time?
a. Microwave oven b. A new production facility c. Stocks of a company d. Residential property
All else equal, a decrease in the demand for oranges will lead to a(n) ________ in equilibrium price and a(n) ________ in equilibrium quantity.
A. decrease; increase B. decrease; decrease C. increase; increase D. increase; decrease
If Jennie spends her income on ice cream and biscuits and the price of ice cream is three times the price of biscuits, then:
a. ?she buys biscuits and ice cream until the marginal utility of ice cream is three times the marginal utility of biscuits. b. ?she maximizes her utility by buying equal quantities of ice cream and biscuits. c. ?she maximizes her utility by buying three times as much ice cream as biscuits. d. ?she maximizes her utility by buying three times as many biscuits as ice cream. e. ?she buys biscuits and ice cream until the marginal utility of biscuits is three times the marginal utility of ice cream.