What would happen to the budget line if income as well as prices of both goods increase by the same percentage?
A. A rightward parallel shift in the budget line
B. A leftward parallel shift in the budget line
C. A rightward shift in the budget line
D. No shift in the budget line
Answer: D
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Productivity increases, brought about by increased education and training, may shift the aggregate supply curve outward.
Answer the following statement true (T) or false (F)
Which of the following statements is true?
A. TC = TFC ? TVC B. AVC = TC / Q C. TFC = TC ? TVC D. MC equals the change in ATC divided by the change in Q.
Refer to the data provided in Table 16.2 below to answer the following question(s).Table 16.2 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.2Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$1$11$8$82 3 4212203 6103163641020420565153552480Refer to Table 16.2. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade permits, how many
permits will be traded between the two firms? A. B will buy one permit from A. B. A will buy one permit from B. C. B will buy two permits from A. D. A will buy two permits from B.
Does a subsidy to buyers affect the supply curve?
A. No, the quantity supplied will increase, but the supply curve does not move. B. No, the quantity supplied will decrease, but the supply curve does not move. C. Yes, it shifts supply up by the amount of the subsidy. D. Yes, it shifts supply to the right by the amount of the subsidy.