Which of the following is not a reason why marketable permits may fail to achieve efficiency?
a. Some firms can reduce emissions at a lower cost than other firms.
b. A market with a small number of buyers and sellers.
c. Imperfect information exists on the value of a permit.
d. There are concerns about the value of permits in the future.
a
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Mars Inc produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should
A) shut down as fixed costs are not being covered. B) keep producing as profits are $50,000. C) keep producing as variable costs are being met. D) keep producing as total costs are being recovered.
If the income elasticity of a particular good is negative 0.2, it would be considered
A) a superior good. B) a normal good. C) an inferior good. D) an elastic good.
If Melanie had $200,000 of income and spent $180,000 on consumption in 2010 and had $300,000 of income and spent $240,000 on consumption in 2011: a. her APC in 2010 was 0.8. b. her APC in 2011 was 0.9. c. her MPC was 0.6
d. her MPC was 0.8.
Exhibit 6-2 Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 1?
a. 25 million b. 50 million c. 75 million d. 175 million e. 200 million