______ is the expenditure needed to construct a building of equal utility to the existing building.

Fill in the blank(s) with the appropriate word(s).


Ans: Replacement cost

Economics

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A chemical factory and a fishing club share a lake. Producing chemicals creates water pollution that harms the fish. The marginal social cost, private marginal cost, and marginal benefit from producing chemicals are in the figure above

Initially the lake is owned by no one. Keeping in mind the Coase theorem, if transactions costs are low then if the chemical factory owns the lake ________ tons of chemicals will be produced and if the fishing club owns the lake, ________ tons of chemicals will be produced. A) 4; 4 B) 4; 8 C) 8; 4 D) 8; 8

Economics

Suppose that macaroni and cheese is an inferior good and the price of macaroni and cheese rises. Explain the income and substitution effects of this price change

What will be an ideal response?

Economics

What would happen in the foreign exchange market if the European Central Bank raises European interest rates?

A) There will be a decline in the value of the euro. B) There will be a decline in the value of the dollar. C) There will be an increase in the value of the dollar. D) U.S. interest rates will decline.

Economics

The Census survey collects data on regular wages, tips, commissions, and bonuses

Indicate whether the statement is true or false

Economics