Consider the data in Table 9.6. If each firm is currently generating 100 gallons of wastewater per day, Firm B would be willing to pay up to ________ to Firm A to be able to generate 200 gallons of wastewater per day.
A. $10
B. $12
C. $28
D. $200
Answer: B
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According to the 2007/2008 United Nations Human Development Report, the Gini ratio for Portugal is 38.5, Norway is 25.8, the United States is 40.8, and Russia is 39.9. Which of these four countries has the lowest level of income equality?
A) Portugal B) United States C) Norway D) Russia
While many analysts defended the actions taken by the Fed and the Treasury to respond to the financial crisis in 2008, others were critical of these actions. The critics were concerned that by not allowing large firms to fail
A) stockholders and bondholders of these firms were not allowed to receive the proceeds from the sale of assets that would have occurred if the firms had declared bankruptcy. B) there is an increased likelihood that other firms will engage in risky behavior in the future with the expectation that they will also not be allowed to fail. C) there will be less competition in the U.S. economy, which could led to higher prices for consumers. D) smaller firms will resent not receiving similar assistance.
The marginal product curve:
A. typically decreases at low levels of input, but increases as input increases. B. cannot be negative, since total output cannot be negative. C. shows how many extra outputs are created with each additional input. D. None of these is true.
The law of diminishing marginal utility explains why the demand curve is downward sloping. The law states that as you consume more of a good, the
a. total satisfaction you obtain from consuming the good falls b. added satisfaction you obtain from consuming an additional unit of the good increases at a diminishing rate c. marginal product increases at a diminishing rate d. satisfaction you obtain from each additional unit of the good you consume falls e. total satisfaction you obtain from each additional good you consume decreases at a diminishing rate