In summarizing the research on the externalities associated with driving cars, a 2007 Journal of Economic Literature article concluded that the optimal corrective tax on gasoline in the United States, in 2015 dollars, would be about
a. $0.50 per gallon.
b. $0.90 per gallon.
c. $2.58 per gallon.
d. $2.78 per gallon.
d
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For a perfectly competitive firm, the long-run supply curve is the long-run average cost curve.
Answer the following statement true (T) or false (F)
The intrinsic value of an option
A) is equal to the option premium. B) is the amount the option actually is worth if it is immediately exercised. C) is the amount the option is expected to be worth on its expiration date. D) is impossible to determine in the absence of information on the future prices of the underlying asset.
In the above figure, at the profit-maximizing rate of production for the perfectly competitive firm total cost is
A) $100. B) $70. C) $30. D) $130.
Why is there a lag between the Fed's actions and the economy's response?