Table 16.1Given the data in Table 16.1, if Firm A were to reduce pollution from 1,000 gallons of wastewater per day to 0 gallons per day, production costs:
A. would increase by $12.
B. would decrease by $12.
C. would not change.
D. cannot be calculated from the information given.
Answer: A
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What is the capital accumulation equation used by Solow?
What will be an ideal response?
Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. In this example the unemployment rate is approximately
A) 4.2 percent. B) 6.1 percent. C) 7.5 percent. D) 8.0 percent.
If price is less than marginal cost, a perfectly competitive firm should decrease output because
A. Marginal costs are increasing. B. Marginal revenue is decreasing. C. The firm is producing units that cost more to produce than the firm receives in revenue, thus reducing profits (or increasing losses). D. Total revenues are decreasing.
A reason that economists keep an eye on both M2 and M1 is because:
A. M2 is more accurate than M1. B. both fluctuate widely and frequently in total dollar value. C. money market accounts are sometimes used like checking accounts and sometimes used like savings accounts. D. during a recession, M1 is meaningless.