If we save 20 percent of our income, our APC is
A. -0.2.
B. 0.
C. 0.2.
D. 0.8.
D. 0.8.
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In the graph shown below, assume policy changed overall environmental quality from E1to E2. Based on this information, the area or distance that represents an estimate of incremental benefits to achieve personal environmental quality of X2, according to the averting expenditure method (AEM), is
a. edfhX2 b. edhX2 c. dfh d. none of the above
Enforcing property rights in an economy will
A) decrease the level of foreign portfolio investment. B) raise the level of investment. C) cause the market system to work less efficiently. D) encourage corruption and expand the underground economy.
Refer to the above figure. The shape of the production possibility curve indicates that production of
A) wheat is characterized by increasing costs while the production of beans is characterized by decreasing costs. B) wheat is characterized by decreasing costs while the production of beans is characterized by increasing costs. C) both goods are characterized by increasing costs. D) both goods are characterized by decreasing costs.
A constant-cost industry
A) is one in which an increase in demand is matched by a proportional increases in long-run supply. B) generates increasing profits whenever demand increases because the new long-run equilibrium price is above the old price even though average costs have not changed. C) has a horizontal long-run supply curve. D) has a downward sloping long-run supply curve.