Which of the following statements most likely lies within the realm of macroeconomics?
a. An increase in the price of automobiles will lead to a decrease in the quantity of automobiles demanded
b. Due to process innovations in computer chip manufacturing, the market supply of computers increased.
c. Due to an economic recession, manufacturing firms began implementing layoffs of their workforces.
d. Anticipating that the benefits would outweigh costs involved, an undergraduate student purchases the course textbook.
c
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Suppose that the current price of a marketable permit to emit one ton of gunk is $60 . For firm A, the marginal cost of reducing one ton of gunk is $50 . For firm B, the marginal cost of reducing one ton of gunk is $70 . Under a marketable permit system, _____
a. both firms will buy a permit and emit one more ton of gunk b. firm A will buy a permit and emit one more ton of gunk, whereas firm B will reduce its emissions of gunk by one ton c. firm B will buy a permit and emit one more ton of gunk, whereas firm A will reduce its emissions of gunk by one ton d. both firms will reduce their emissions of gunk by one ton e. both firms will go out of business
Refer to Exhibit 2-8. For Maya, the opportunity cost of producing one unit of good X is ___________ unit(s) of good Y.
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Suppose that you rent a house next to a factory. The factory legally emits a chemical into the air that smells like feet. You now have to spend $300 more per month on air fresheners because the firm pollutes the air. You could move to another house far enough away from the factory, but the rent for that house is $200 more than you now pay. The efficient solution to this problem is that
A. the factory owner should reimburse you $100, the difference between your expenses and the higher rent on the new house. B. you should move to the new house because the additional rent on that new house is less than the additional expenses you incur from living next to the factory. C. the firm should be able to continue to pollute because only one person is being harmed by the factory's pollution. D. the factory owner should compensate you $300 so that you can pay for the additional expenses you incur.
The Law of Demand is the reason behind:
A) the price elasticity of demand having a positive value. B) the income elasticity of demand having a positive value. C) the price elasticity of demand having a negative value. D) the income elasticity of demand having a negative value.