Sally derives utility from consuming apples and tacos as shown in the table above. Apples cost $1 each and tacos cost $2 each. If Sally's income is $9, she will consume
A) 5 apples and 2 tacos.
B) 3 apples and 3 tacos.
C) 1 apple and 4 tacos.
D) no apples and 4 1/2 tacos.
B
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U.S. tire production involves large social costs from air pollution. How will stronger U.S. environmental regulations requiring firms to reduce their air pollutants affect U.S. tire imports?
a. Stronger U.S. environmental regulations will cause increases in U.S. tire imports. b. Stronger U.S. environmental regulations will cause decreases in U.S. tire imports. c. Stronger U.S. environmental regulations will neither cause increases nor decreases in U.S. tire imports d. Stronger U.S. environmental regulations will cause decreases in U.S. tire imports but not reduce tire producers' emissions of air pollutants.
A car rental company will earn a net income of $6,000 per year on a new car for the first three years of its life. After three years, the car will be worthless. If the interest rate is 10 percent (0.10) per ear, what is the present value of the car to the car rental company? (Assume that each year's income is received at the end of the year.)
a. $16,413.22 b. $14,921.11 c. $18,000.00 d. $16,363.62 e. $13,523.67