Mrs. Dodge has $8 million in income and pays no income taxes. Her income is most likely
a. capital gains.
b. interest on corporate bonds.
c. interest on municipal bonds.
d. offset by mortgage interest.
c
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Production possibilities frontiers usually curve out and away from the origin. The implication of this curvature is that
A) as resources are used to produce one good, fewer resources are available to produce another good. B) technological change is present. C) the opportunity cost of producing a good stays the same regardless of how much of that good is produced. D) some resources are better at producing one good while other resources are better at producing alternative goods. E) the opportunity cost of producing a good goes down as more of that good is produced.
Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. Suppose that Firms A, B, and C are the only polluters in the state and that each emits 4 tons of pollution into the atmosphere. To cut the level of pollution in half the government issues two transferable pollution permits to each firm (a cap and trade policy). What is the total cost savings to society of decreasing pollution to half its present level if firm C buys one pollution permit from firm A and one pollution permit from firm B compared to if there were a government mandate for each firm to cut pollution by one-half?
A. $515 B. $1,300 C. $1,380 D. $965 E. $1,025
The new classical school holds that: a. macroeconomic equilibrium is achieved only through active government intervention. b. unemployment is only temporary, because the economy tends naturally toward equilibrium. c. rigid prices and wages prevent the economy from achieving equilibrium. d. macroeconomic equilibrium cannot occur as long as the aggregate supply curve isvertical
e. rational expectations result in involuntary unemployment and prolonged periods of macroeconomic disequilibrium.
__________ are most likely to raise the eyebrows of antitrust officials while ______ are not
a. Price discriminators; predatory pricers b. Conglomerate mergers; vertical mergers c. Horizontal mergers; conglomerate mergers d. Low Herfindahl-Hirschman indices; high Herfindahl-Hirschman indices e. Patent sales; patent purchases