G202 Final Exam questions and verified correct answers 2024

In regards to the butter-flavored micro-wave popcorn case presented in class, it is clear that when comparing the profit maximizing equilibrium wage and quantity of labor to the socially efficient equilibrium wage and quantity of labor, that the following is true: a) Wf < We and Lf > Le. b) Wf > We and Lf > Le. c) Wf < We and Lf < Le. d) Wf > We and Lf < Le. - correct answer a) Wf < We and Lf > Le. You own a coal mining company and at your current production level your direct production costs are $20 per unit, while you are selling your output for $40 per unit in a competitive coal market. Also each unit of production leads to $5 worth of pollution damage. Your production is heavily regulated by the US Environmental Protection Agency and you have been given an initial allocation of tradable pollution permits freely to be able to produce at your current production level (note that one pollution permit gives the right to produce one unit of output). Which of the following permit prices is the minimum price you would be willing to accept to entice you to sell one of your pollution permits? a) $63 b) $42 c) $26 d) $17 - correct answer c) $26 Based on your reading of the Starbucks case, an international survey conducted by Environics and the Gallup Organization concluded that roughly: a) 75% of respondents had little to no trust in large corporations, while 15% expressed distrust in NGOs. b) 50% of respondents had little to no trust in large corporations, while 30% expressed distrust in NGOs. c) 40% of respondents had little to no trust in large corporations, while 60% expressed distrust in NGOs. d) 10% of respondents had little to no trust in large corporations, while 30% expressed distrust in NGOs. - correct answer b) 50% of respondents had little to no trust in large corporations, while 30% expressed distrust in NGOs.