Suppose that a hog-producing firm has been dumping its wastes into the local river. The government taxes the sale of hogs to pay for the cost of the river cleanup. As a result
a. more hogs are produced and the price falls
b. more hogs are produced and the price increases
c. fewer hogs are produced and the price falls
d. fewer hogs are produced and the price increases
e. quantity produced doesn't change but the price increases
D
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Which of the following is NOT a true statement regarding free trade?
A. Free trade generally reduces the domestic prices of imports. B. Free trade may stimulate economic growth through export sales. C. Every individual in a country gains short-term benefits from free trade. D. Free trade promotes specialization and efficient production.
If your tuition is $25,000 this semester, your books cost $1,500, you can only work 20 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $7,500 this semester (same as if not attending college), then your opportunity cost of attending college this semester is
A. $26,500. B. $26,800. C. $31,000. D. $38,500.