Refer to the Information in Figure 16

question 25

Multiple Choice

Refer to the information in Figure 16.5 below to answer the question(s) that follow. Figure 16.5
Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free.
-Refer to Figure 16.5. Suppose that instead of a tax, the government uses standards to achieve the emission reductions, requiring that each company cut its original emissions in half rather than allowing each company to choose emissions based on their costs. Compared to the outcome under the tax, this common standard would result in

• A) Alpha gaining more than Beta loses.
• B) Alpha gaining less than Beta loses.
• C) Beta gaining more than Alpha loses.
• D) Beta gaining less than Alpha loses.

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Definitions:

Retributive Justice Theory

A theory of justice that holds that the best response to a crime is a punishment proportional to the offense, inflicted because the offender deserves the punishment.

Bureau of Labor Statistics

A unit of the United States Department of Labor that collects, processes, analyzes, and disseminates essential statistical data related to labor market activity, working conditions, and price changes.

National Compensation Survey

The National Compensation Survey is a comprehensive study conducted by the Bureau of Labor Statistics in the United States that gathers and analyzes salary and benefits data across various occupations and regions.

Salaries

Regular payments made by employers to employees, usually monthly or bi-weekly, for their work or services.