Here are the costs of going to college: tuition $5,000; books $200; housing $1,000; food $1,000; lost income from work $10,000. Studying and work are equally desirable in your mind. Suppose that you could live at home at no cost to you if you worked, but must live on campus if you go to school. What is the total opportunity cost to you of going to school rather than working? (Food costs the same at school or home.)

Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $  600 2nd ton of pollution$ 70 $ 90 $  700 3rd ton of pollution$125 $150 $  900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. Suppose that Firms A, B, and C are the only polluters in the state and that each emits 4 tons of pollution into the atmosphere. To cut the level of pollution the government imposes an emission tax of $300 per ton of pollution.  As a result of this tax, Firm A would _________________, firm B would ____________________ and firm C would __________________.

A. not reduce any of its pollution; not reduce any of its pollution; reduce all 4 tons of its pollution B. reduce all 4 tons of its pollution; only reduce 1 ton of its pollution; not reduce any of its pollution C. reduce all 4 tons of its pollution; reduce all 4 tons of its pollution; not reduce any of its pollution D. not reduce any of its pollution; reduce 3 tons of its pollution; reduce all 4 tons of its pollution

?Suppose that government purchases of goods and services increase by $200 and at the same time lump-sum taxes increase by $200. Which of the following is true in this case?

a. The budget deficit will decrease as the economy expands. b. ?There will be no change in the budget deficit. c. ?Whether the budget deficit will increase or decrease will depend on the value of the marginal propensity to consume. d. ?The budget deficit will increase by $200. e. ?The budget deficit will increase by $400.