What is the equilibrium price and quantity of CFC-11 after the excise tax?
Consider the following market for CFC-11, a known ozone-depleting substance:
Demand: Q= 20 – 1.5P Supply: Q= 5+0.5P
whereP is price per pound.
Assume the governmental authority imposes a $5 per pound excise
tax on CFC-11, which shifts the supply function to Q’ = 2.5 +0.5P.Use this information for any or all of the next three questions below.
a. P = $8.75; Q = 6.875 c. P = 6.875; Q = 8.75
b. P = $7.5; Q = 8.75 d. none of the above
a. P = $8.75; Q = 6.875
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A decrease in disposable income will:
a. shift the consumption function upward b. shift the consumption function downward. c. cause an upward movement along the consumption function. d. cause a downward movement along the consumption function. e. make the consumption function flatter.
Which statement is true?
A. Most of the United States' production is geared toward consumer goods. B. Nearly 25 percent of the United States' national output is devoted to armaments. C. Japan devotes a higher proportion of its national output to armaments than the United States does. D. What gets produced in the United States is decided by a central planning board consisting of top government, corporate, and union officials.
In the table above, how much does the third unit of labor ADD to total output?
A. 125 B. 150 C. 100 D. 300 E. none of the above
If a corporation goes bankrupt:
A. neither stockholders nor bondholders receive any money. B. stockholders get paid from the sale of company assets before bondholders do. C. bondholders get paid from the sale of company assets before stockholders do. D. stockholders must honor the debts to bondholders out of personal assets if necessary.