Refer to the data provided in Table 16.1 below to answer the following question(s).Table 16.1 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.1Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$4$41$8$82 610212203 9193163641332420565185052480Refer to Table 16.1. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are not allowed to trade permits, what is the
total cost of the pollution reduction?
A. $30
B. $55
C. $58
D. $130
Answer: B
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Ms. Rockefeller has an income of $200 million. If her income is in the form of wages and salary, then most of her income is taxed at __________ percent.
A. 15 B. 27 C. 30 D. 35
Consider a Stackelberg duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi(Qi) = 2. Based on this information, the leader's reaction function is:
A. r1(Q2) = 24.5 ? 0.5Q2 and r1(Q2) = 24.5 ? 0.5Q1. B. Q1 = 49 ? 0.5Q2 and Q2 = 49 ? 0.5Q1. C. The Stackelberg leader does not react to the output decision of its rival. D. r1(Q2) = 24.5 ? 0.5Q1 and r2(Q1) = 24.5 ? 0.5Q2.
A country has a trade surplus when
A. its exports exceed its imports. B. its government spending exceeds its tax revenues. C. its exports equal its imports. D. its exports are less than its imports.
Refer to the given data. Assuming that Alpha and Beta are the only two nations in the world, at the equilibrium world price:
Answer the question on the basis of the following data for the hypothetical nations of Alpha and Beta. Q s is domestic quantity supplied and Q d is domestic quantity demanded.
A. both nations will export steel.
B. both nations will import steel.
C. Alpha will export steel and Beta will import steel.
D. Beta will export steel and Alpha will import steel.