Many states charge a 10-cent deposit on every can of soda sold. A purchaser pays an extra 10 cents per can and will get his or her money back by returning the empty can to a store. This policy encourages recycling by
A. lowering the willingness to pay for recycling materials.
B. shifting in the demand curve for canned soda.
C. raising the opportunity cost of discarding empty cans.
D. taxing the production of canned soda.
Answer: C
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If a corporate bond with a face value of $2,000 pays yearly coupon payments of $50, what is the coupon rate?
A) 2.5% B) 4% C) 25% D) 40%
If a bank has excess reserves of $15,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has total reserves of
A) $11,000. B) $21,000. C) $31,000. D) $41,000.
In many cities, garbage collectors earn more than social workers. What could explain this wage differential?
a. Social work provides more nonmonetary rewards than garbage collecting does. b. There is a greater demand for social workers. c. There is a greater supply of trash collectors. d. Collecting garbage requires less skill. e. Social work is a less prestigious profession.
Assuming the interest rate is 6 percent, which of the following has the greatest present value?
a. $300 paid in two years b. $150 paid in one year plus $140 paid in two years c. $100 paid today plus $100 paid in one year plus $100 paid in two years d. $285 today