The purpose of an effluent fee imposed on a firm is
A) to increase output of its product by increasing the resources allocated to production.
B) to increase output of its product by reducing the resources allocated to production.
C) to reduce output by increasing production costs thereby reducing resources used.
D) none of the above
Answer: C
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In France, two qualities of wines are produced - table wine sold in bulk (bring your own bottle) and a higher quality of wine. Suppose that the English import all their wine from France. Then, we would we expect to find, on average that
a. the English drink more of the higher quality of wine, because transportation costs will lower the relative price of high-quality wine relative to table quality wine. b. the English will drink more table quality wine, because transportation costs will raise the relative price of table quality wine to high-quality wine. c. the French will drink more of the high quality wine because transportation costs reduce demand for wine in England. d. the French will drink more of the high quality wine because the wine is produced there.
In the market for factors of production, firms earn income by selling factors of production to households
Indicate whether the statement is true or false
The function of money that enables individuals to exchange goods and services in a common unit of account is called:
A) medium of exchange. B) store of value. C) unit of account. D) measure of power.
Gross domestic product can be thought of as a measure of
A) the national money supply. B) national income. C) national welfare. D) the national value of all legal exchanges. E) none of the above.