In a particular year, if the price level rises by 4 percent and the nominal wage of workers rises by 6 percent, we can conclude that the real wage has:
What will be an ideal response?
increased by 2 percent.
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If you are willing to purchase a house for $300,00 . and you purchase the house for $275,000 . this transaction will generate:
a. There is no surplus created b. $25,00 . worth of seller surplus and unknown amount of buyer surplus c. $10,00 . worth of buyer surplus and $15,00 . of seller surplus d. $25,00 . worth of buyer surplus and unknown amount of seller surplus
The equality-of-sacrifice doctrine of taxation is based on the
a. increasing marginal utility of income. b. increasing marginal utility of government transfer payments. c. diminishing marginal utility of income. d. diminishing marginal utility of government transfer payments.
Answer the following statement(s) true (T) or false (F)
1. Overall, empirical studies fail to support the claim that command-and-control policy is more costly to implement than more flexible approaches. 2. The uniformity of technology-based standards is the characteristic that allows them to achieve cost-effectiveness. 3. According to the cost-effectiveness criterion, trading of SO2 allowances under the CAA should continue as long as MSBabatement>MSCabatement. 4. Because of the dual-control approach, emissions limits tend to be more stringent for newer facilities, creating a bias against building newer, and hence cleaner, facilities. 5. In an allowance market, buyers will purchase allowances as long as the price is higher than their MAC, which results in a cost-effective solution.
The Clean Air Acts of 1970 and 1990 used command-and-control regulatory standards to reduce air pollution.
Answer the following statement true (T) or false (F)