People respond to incentives
A) by ignoring negative incentives and responding to positive incentives only.
B) only when they are irrational.
C) as they never intentionally make decisions that would leave them worse off.
D) when they have low incomes.
C
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The table above shows information about the costs and benefits of a steel smelter that pollutes the air of a city
If the marginal external cost is $10 per ton at every quantity of steel produced, the equilibrium quantity when the steel industry is unregulated is ________ tons per week. A) 5 B) 15 C) 20 D) 25
Suppose output is $440 billion, government purchases are $40 billion, desired consumption is $320 billion, and net exports are $35 billion. Then desired investment equals
A) $20 billion. B) $30 billion. C) $35 billion. D) $45 billion.
Samantha is maximizing total utility while consuming food and clothing. Her marginal utility from food is 50, and her marginal utility from clothing is 25 . If clothing is priced at $10 per unit, the price of food per unit must be
a. $2. b. $2.50. c. $5. d. $20.
Which of the following is an effect of a subsidy that encourages exports?
a. The amount of labor used in production is lower. b. The raw materials needed for production are reduced. c. The costs of production have been reduced. d. The opportunity costs of production are lower.