In the circular flow model, the factors of production flow in the
A) opposite direction as does the goods market.
B) opposite direction as does the government.
C) same direction as do the rents, wages, interest, and profits.
D) opposite direction as do the rents, wages, interest, and profits.
E) same direction as does the goods market.
D
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Suppose an individual's MRS (of steak for beer) is 2:1 . That is, at the current consumption choices he or she is willing to give up 2 beers to get an extra steak. Suppose also that the price of a steak is $1 and a beer is $4 . Then in order to increase utility the individual should:
a. buy more steak and less beer. b. buy more beer and less steak. c. continue with current consumption plans.
The cost-effective solution is:
Suppose the combined abatement for two firms, firm X and firm Y, facing the New Source Performance Standards (NSPS) must total 30 units, and that the MAC functions for these firms are: MACX = 0.6AX MACY = 0.3AY Use this information for either of the next two questions below. a. Ax = 15; Ay = 15 c. Ax = 10; Ay = 20 b. Ax = 9; Ay = 4.5 d. none of the above