Refer to the data provided in Table 16.4 below to answer the following question(s).Table 16.4 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.4Firm 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$2$21$16$162 6 82 24 4031220332 724204044011253070548160Refer to Table 16.4. 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 allowed to trade permits and
all possible trades are made, Firm A will reduce its pollution by a total of ________ units.
A. 2
B. 3
C. 4
D. 5
Answer: D
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The second half of the 1940s was a period of
A. recession. B. no economic growth. C. very slow economic growth. D. fairly high economic growth.
In the figure above, with international trade American consumers buy ________ million shirts per year
A) 48 B) 32 C) 16 D) 24
In the above graphs, an inverse relationship is shown by
A) Graph A. B) Graph B. C) Graph C. D) Graph D.
If a price ceiling is not binding, then a. the equilibrium price is above the price ceiling
b. the equilibrium price is below the price ceiling. c. it cannot be legally enforced. d. None of the above is correct because all price ceilings must be binding.