Before the policy was put into effect, estimated consumer surplus (in thousands of dollars) was valued at
A collaborative federal and state program has been proposed in response to acid rain damagein Newport Bay, Maryland. To estimate the incremental benefits of the program, you use thetravel cost methodbasedupon the following pre- and post-policy recreational demand functions:
Pre-policy: P = 62 – 0.02V1 Post-policy: P = 80 – 0.02V2,
where V is the number of visitors (in thousands) and P is the admission fee. Assume the admission fee is set at $20 per visitor.
a. 2,100 b. 44,100 c. 90,000 d. 45,900
b. 44,100
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The population of a small town is 5,000. There are 4,000 people in the labor force, and 3,000 people are employed. The unemployment rate equals
A) 25 percent. B) 60 percent. C) 75 percent. D) an undetermined amount given the lack of information.
Most employees ________ pay taxes on the value of health insurance provided by employers, and most people ________ get a tax break when buying individual health insurance policies
A) do; do B) do not; do not C) do not; do D) do; do not