Both firm A and firm B emit 300 tons of pollution. Suppose both firm A and firm B have permits that allow each to emit 100 tons of pollution
If it costs $5,000 for firm A to eliminate 100 tons of pollution and it costs firm B $6,000 to eliminate 100 tons of pollution, then A) firm B will sell its permits to firm A for a price above $6,000.
B) firm A will sell its permits to firm B for a price below $6,000.
C) firm A will sell its permits to firm B for a price above $6,000.
D) firm B will sell its permits to firm A for a price below $6,000.
B
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A tariff is a tax imposed by a government on its own exports
Indicate whether the statement is true or false
Fixed exchange rates are determined in free markets by the forces of demand and supply
a. True b. False Indicate whether the statement is true or false
The prevalent welfare policy is to
A. provide vocational training for welfare recipients, so that they can be self-supporting. B. provide government and private sector employment for those leaving the welfare rolls. C. to basically force welfare recipients to leave the welfare rolls. D. to allow welfare recipients to continue receiving benefits as long as there are children under six years of age in the family.
Which fundamental economic question requires society to decide the mix and quantity of goods and services it will produce?
A. The What to Produce question. B. The Why to Produce question. C. The How to Produce question. D. The For Whom to Produce question.