Other things equal, if the government increased the quantity of pollution rights to be sold,
a. pollution would not be affected
b. the price of pollution rights would rise, and the amount of pollution would decrease
c. the price of pollution rights would fall, and the amount of pollution would decrease
d. the price of pollution rights would fall, and the amount of pollution would increase
e. the price of pollution rights would rise, and the amount of pollution would increase
D
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A. Distinguish between a tariff and a quota
b. In what ways are tariffs and quotas similar? c. In what ways are tariffs and quotas different? d. Why might a foreign producer prefer a quota rather than a tariff? What will be an ideal response?
The table above represents five points on the production possibility frontier for the small country of Baca, which produces only rugs (measured in thousands) and wheat (measured in thousands of bushels): If the economy is currently at point A,
what is the opportunity cost of producing an additional 10,000 bushels of wheat? If the economy is currently at point B, what is the opportunity cost of producing an additional 10,000 bushels of wheat? What if the economy is currently at point D?
Short run refers to a period of time during which:
a. all the factors are constant. b. all the factors are variable. c. the producer can shift from one plant size to another. d. some factors are fixed while some others are variable. e. the producer cannot change the level of output.
At the international level, the division of labor increases output through
a. tariffs. b. economies of scale. c. standardization. d. exchange rates.