A tannery discovers a technology that makes it cheaper to reduce the air pollution it generates in making paper. On a graph of the optimal level of air quality, the use of the new technology would be represented by
a. a leftward shift of the marginal social cost curve
b. a rightward shift of the marginal social cost curve
c. movement to the right along the marginal social cost curve
d. movement to the left along the marginal social cost curve
e. a downward shift of the marginal net benefit curve
B
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A reduction in nominal wages will cause which of the following?
A) a leftward shift in the short-run aggregate supply curve to shift to the left B) a movement along the short-run aggregate supply curve C) a shift of both the short-run and long-run aggregate supply curves D) a rightward shift in the short-run aggregate supply curve
A citizen of the U.S. buys a factory in London. This is an example of a(n) ________
A) foreign portfolio investment B) export by the U.S. C) foreign direct investment D) import by the U.S.
The Herfindahl-Hirschman Index is calculated by ________
A) adding the market share of each firm in the market and squaring the resulting number B) squaring the market share of each firm competing in the market and then summing the resulting numbers C) adding the number of firms in the market and squaring the resulting number D) adding the profit earned by each firm in the market
Joe walks into Best Buy prepared to spend no more than $500 cash on a new computer, but the price turns out to be $600. Joe is told if he finances it on a Best Buy credit card, it will cost $600, but he will get a $25 gift card free with the computer. Joe opts to open the credit card and puts the full $600 on the account. According to economic theory, Joe's decision is:
A. irrational. B. rational. C. budget-conscious. D. optimal.