Economists would say that the demand for tacos is
a. relatively inelastic because there are very few close substitutes available.
b. relatively elastic because there are many substitutes for tacos.
c. increasing because of reports of Mad Cow Disease.
d. relatively inelastic because its demand curve is flatter.
B
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In the multiple-polluter case for a pollution permit system, suppose Firm 1 and Firm 2 face marginal abatement cost functions of MAC1 = 4.5A1 and MAC2 = 2.25A2, respectively. If the government issues each firm tradeable pollution permits such that each has to abate 10 units of pollution, then, based on this allocation,
a. the two firms have no incentive to trade b. firm 1 has an incentive to buy a permit if the price is greater than $45 c. firm 2 has an incentive to buy a permit if the price is above $22.50 d. firm 2 will be willing to sell a permit if the price is above $22.50
Assume an economy produces only hamburgers and hot dogs and the base year is 2016. Quantities ProducedPrices?2016201720162017Hamburgers2,0003,000$2$3.00Hot dogs3,0004,000$1$1.50Given the data in the table above, what is the value of nominal GDP in 2017?
A. $ 7,000 B. $10,500 C. $15,000 D. $ 5,000
An economy's resources:
A. can always be overutilized. B. can never be overutilized. C. can be overutilized, but only temporarily. D. are always fully employed.
"Crowding out" refers to federal government deficits financed by:
A. borrowing which increases interest rates and thereby reduces private spending. B. increasing taxes which reduces private spending. C. the federal government buying foreign debt which reduces the amount of government spending and government programs. D. reducing government spending which reduces interest rates.