Define GDP
What will be an ideal response?
The total market value of all final goods and services produced within an economy in a given year.
You might also like to view...
Now, assume that the government institutes an emission fee of $16 thousand per unit of pollution. How many units of pollution would each polluter abate? Is the $16 thousand fee a cost-effective strategy for meeting the standard? Explain.
Assume that there are two firms, each emitting 20 units of pollutants into the environment, for a total of 40 units in their region. The government sets an aggregate abatement standard (AST) of 20 units. The polluters' cost functions are as follows, where the dollar values are in thousands: Polluter 1: TAC1 = 10 + 0.75(A1)2, Polluter 2: TAC2 = 5 + 0.5(A2)2, MAC1 = 1.5A1, MAC2 = A2.
If the price of clothing (which accounts for 5 percent of total expenditures in the CPI basket), rises by 10 percent in one year while the prices of all other goods remain constant, by how much will the CPI rise?
A. 0.5 percent B. 10 percent C. 5 percent D. 50 percent