ECO100Y1 Study Guide - Midterm Guide: Autonomous Consumption, Nominal Interest Rate, Time 100
Document Summary
Term test 3 march 3, 2016: you have 70 minutes to complete this test, there are 10 multiple-choice questions and three short answer questions, you may use a non-programmable calculator. No other aids are permitted: this book (5 pages) contains the multiple-choice questions only and will not be, there are a total of (cid:883)(cid:882)(cid:882) marks, distributed as indicated in each question, answer all questions. Marks are awarded for clear and concise explanations. graded. All multiple-choice responses must be recorded in the answer grid. Part 1a: multiple-choice questions (40 marks; 4 marks each) Consider an activity that generates a positive externality for all activity levels. Three firms currently emit five tons of pollution each. Table 1 shows the marginal benefit of each ton of pollution for the three firms. If the government wishes to reduce pollution by 7 tons as efficiently as possible, how many tons will firm c emit: 1, 2, 3, 4, 5.
