A plant uses machinery and waste water to produce steel. The owner of the plant wants to maintain an output of 10,000 tons a day, even though the government has just imposed a $100 per gallon tax on using waste water
The reduction in the amount of waste water that results from the imposition of this tax depends on A) the amount of waste water used before the tax was imposed.
B) the cost to the firm of using waste water before the tax was put in place.
C) the rental rate of machinery.
D) the marginal product of waste water only.
E) the ratio of the marginal product of waste water to the marginal product of machinery.
E
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A corn-chip maker who buys September corn futures in May at the time she signs a contract with Safeway to deliver 1000 cases of corn chips each month for the next year is
A) competing against speculators, who profit from price fluctuations. B) increasing her risk from price fluctuations. C) reducing her risk from price fluctuations. D) reducing or increasing her risk from price fluctuations, depending on what subsequently happens to the price of corn.
As a person's wealth increases, which of the following portfolio holdings is likely to increase the least?
A) checking account B) stocks C) money market fund D) bonds
Referring to the graph above, an economic variable that had peaked in December 1911, November 1914, and February 1919 is likely a ________ variable
A) leading countercyclical B) leading procyclical C) lagging countercyclical D) lagging procyclical E) none of the above
In the above table, what is the marginal revenue product of the 2nd worker?
A) $99 B) $70 C) $110 D) $9