The marginal cost curve of pollution abatement
A. slopes downward because of the law of diminishing marginal utility.
B. slopes upward because of the law of diminishing product.
C. slopes downward because of the law of diminishing returns.
D. slopes upward because firms will maximize profits.
Answer: B
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The years from 1933 to 1937 are notable for ________
A) high unemployment, despite rapid growth of real output B) low unemployment, despite sluggish output growth C) persistent deflation, despite rising unemployment D) the creation of the Federal Reserve System E) none of the above
Consider a negative income tax. As discussed in your textbook, under the negative income tax, each person is entitled to a grant of G dollars per month. For every dollar the person earns, the grant is reduced by t dollars. Suppose G = 200 and t = 0.40. Consider an individual whose hourly wage is $10. There are 30 days in a month (so T is 720). Sketch the budget constraint before and after the introduction of a negative income tax.
What will be an ideal response?
Revenue equivalence ________ hold when the item being auctioned has independent private values and ________ hold when the item being auctioned has a common value.
A) does not; does not B) does; does not C) does; does D) does not; does
The government can help solve the information asymmetry problem by:
A. telling less-informed parties not to participate in the market. B. excluding those who do not have complete information from the market. C. making markets illegal where information asymmetry is significant. D. requiring the more informed party to reveal the missing information.