A binding price floor may not help all sellers, but it does not hurt any sellers
a. True
b. False
Indicate whether the statement is true or false
False
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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
Which of the following will the Federal Reserve do in order to increase the money supply?
a. sell government bonds b. buy corporate bonds c. sell common stock d. buy government bonds e. increase the salaries of its governors
In a capitalist system, the decisions and actions of millions of consumers and firms are highly coordinated by:
A. The state and government B. Markets and prices C. A central planning agency D. An international organization
Refer to the information provided in Figure 13.2 below to answer the question(s) that follow. 
Figure 13.2 Refer to Figure 13.2. This firm's total revenue will be maximized at a price of
A. $8. B. $6. C. $5. D. $4.