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, how
many permits will be traded between the two firms?
A. B will buy two permits from A.
B. A will buy two permits from B.
C. B will buy one permit from A.
D. A will buy one permit from B.
Answer: A
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Growth in real GDP per capita has:
A. been more rapid since the mid-nineteenth century than ever before. B. slowed since the mid-nineteenth century compared to before. C. increased over the last 150 years only in the United States and Canada. D. been steady over the course of human history.
Tom Searchinger, a senior attorney at the Environmental Defense Fund, observed that generous farm subsidies have encouraged farmers to produce more corn and more wheat. How does this affect the market for fertilizer?
A) The supply of fertilizer increases. B) The demand for fertilizer increases. C) The supply of fertilizer decreases. D) The demand for fertilizer decreases.
What would happen in the market for rental housing in your community if the local government legally mandated rents that were below the market clearing price?
A) There would be a surplus of rental housing. B) There would be a shortage of rental housing. C) The demand for rental housing would increase. D) The supply of rental housing would decrease.
A subsidy is the same thing as a tax deduction
Indicate whether the statement is true or false