In a market for emission permits, firms that emit over their allowed limits
A) are forced to shut down.
B) are taxed by the government for the amount of emissions.
C) receive a subsidy for the amount of emissions.
D) pay a price of these emissions.
D
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If asked to comment about a new tax on cotton collected from growers who do not grow their plants in the shade of other plants, an economist with no particular expertise in cotton growing might still note that
a. the price received by these cotton producers will fall by the full amount of the tax. b. the price paid by consumers of this cotton will rise by the full amount of the tax. c. the legal incidence of the tax does not determine who bears the burden of the tax. d. the tax was imposed on the wrong party, it should have been placed on buyers.
The figure below shows the supply and demand curves for jeans in Smallville.
At the price of $60 per pair, sellers offer ________ pairs of jeans per day, and buyers wish to purchase ________ pairs of jeans a day.
A. 24; 8 B. 8; 24 C. 16; 16 D. 60; 20
People benefit by participating in the market because
A. Market participation allows individuals to specialize and, with trade, ultimately consume more. B. Participants in the market do not have to make choices. C. Resources are no longer limited. D. There are always participants in the market that are more efficient than you are in production.
A painting is currently worth $100,000, and is expected to maintain its real value for three years. The real interest rate is expected to remain constant at 10%. What is the present value of the painting's expected price at the end of the third year?
A) $75,131 B) $88,899 C) $96,153 D) $100,000 E) $70,000