Use the figure below to answer the following question.
What is the amount of total surplus without the excise tax?
A. $100
B. $32
C. $4
D. $80
Answer: A
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In the multiple-polluter case for a pollution permit system, suppose Firm 1 and Firm 2 face marginal abatement cost functions of MAC1 = 4.5A1 and MAC2 = 2.25A2, respectively. If the government issues each firm tradeable pollution permits such that each has to abate 10 units of pollution, then, based on this allocation,
a. the two firms have no incentive to trade b. firm 1 has an incentive to buy a permit if the price is greater than $45 c. firm 2 has an incentive to buy a permit if the price is above $22.50 d. firm 2 will be willing to sell a permit if the price is above $22.50
Using the data in the above table, the labor force is
A) 140.0 million. B) 152.1 million. C) 154.2 million. D) 250.0 million. E) 127.9 million.
Booms and recessions are transmitted to other countries
a. True b. False Indicate whether the statement is true or false
Consider a broom factory that permanently closes because of foreign competition. If the broom factory's workers cannot find new jobs because their skills are no longer marketable, then they are classified as:
a. seasonally unemployed. b. cyclically unemployed. c. frictionally unemployed. d. structurally unemployed.