The figure above contains several budget lines for Sarah, who uses her income to purchase two goods, cheese and crackers
a) A movement between which two budget lines represents an increase in income?
b) A movement between which two budget lines represents an increase in the price of a pound of cheese?
c) A movement between which two budget lines represents an increase in the price of a box of crackers?
a) A movement from BL1 to BL3 shows an increase in income.
b) A change from BL2 to BL1 shows an increase in the price of a pound of cheese.
c) A change from BL3 to BL2 shows an increase in the price of a box of crackers.
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Which of the following statements best illustrates the concept of derived demand?
A. As income goes up, the demand for farm products will increase by a smaller relative amount. B. A decline in the price of margarine will reduce the demand for butter. C. A decline in the demand for shoes will cause the demand for leather to decline. D. When the price of gasoline goes up, the demand for motor oil will decline.
Answer the following statement(s) true (T) or false (F)
1. Funding for publicly owned treatment works (POTWs) was originally in the form of loans and later moved to a federal grant program. 2. The Clean Water State Revolving Fund (CWSRF) program replaced the federal grant program and established state loans to support POTW construction and other projects. 3. Funding through the Clean Water State Revolving Fund (CWSRF) program was supplemented by funds allocated through the American Recovery and Reinvestment Act of 2009. 4. Ultimately, federal subsidies of POTW construction accomplished little in terms of improving waste treatment for the U.S. population. 5. Empirical research indicates that federal grants added dollar-for-dollar to POTW construction that would not otherwise have been completed at the local level.