Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases.
B. initially increases, then decreases.
C. decreases.
D. remains constant.
Answer: A
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Refer to above figure. What is the amount of government revenue resulting from imposition of the tariff?
What will be an ideal response?
Output Total Cost015125233340448558670Table 8.5Refer to Table 8.5. The marginal cost of the third unit of output is:
A. $0. B. $7. C. $8. D. $40.
Anyone can purchase sulfur dioxide emission allowances on the Chicago Mercantile Exchange. Several environmental groups have raised money to buy allowances (which they subsequently destroy). As part of their fund-raising, these groups have urged
contributors to buy the allowances as gifts. As one newspaper story put it, "For the environmentalist in your life, here's a gift that is sold by the ton, fits in an envelope and will last forever." Source for quote: Randall Edwards, "Dear Santa: Please Bring Me Sulfur Dioxide for Christmas," Columbus Dispatch, December 19, 1999. What would be the impact on the price of the emission allowances in the market if more people buy sulfur emission allowances and destroy them? A) The price rises. B) The price falls to zero. C) The price falls but not to zero. D) The price remains unchanged because the allowances purchased by the environmental groups are destroyed.
Government economic policies are designed to have the biggest impact on _____
a. cyclical unemployment b. frictional unemployment c. structural unemployment d. seasonal unemployment