A carbon tax placed on coal will:
A. shift the supply curve for coal to the right.
B. shift the supply curve for coal to the left.
C. not affect the supply curve for coal.
D. decrease the demand for coal.
Answer: B
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You are an economist for the City Subway Commission. Presently, the price of a subway ride is 80¢, and 200,000 seats are filled weekly. The price elasticity of demand for subway rides is -0.40, and the income elasticity of demand is -0.60.
(i) The Commission wants to ensure that the subway has enough excess capacity to handle any extra demand that might occur during an economic decline. If a recession lowered area incomes by 5%, how many additional seats per week would the subway need? (ii) The Commission has just approved a subway price increase of 10¢ per ride. The Commission wants to know if it can use the opportunity to retire two aging subway cars that each provide 8,000 seats weekly. When the price hike goes into effect, can neither, one, or both cars be retired?
Refer to the table below. What is Gorgeous Sands Resort's long-run marginal cost?
The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units.
A) $6,000
B) $1,000
C) $5,000
D) $4,000
If the fluctuations in the economy's real growth rate from year to year are caused primarily by variations in the rate at which aggregate supply increases, then data would show
a. a cyclical relationship between inflation and unemployment. b. a direct relationship between inflation and unemployment. c. an inverse relationship between inflation and unemployment. d. no relationship between inflation and unemployment.
In the year 2005, the rate of personal savings in the United States was below _____ percent.
A. 15 B. 10 C. 5 D. 1