Four Companies, Alpha, Beta, Gamma and Delta, Are Burning Coal

question 93

Multiple Choice

Four companies, Alpha, Beta, Gamma and Delta, are burning coal to produce electricity. As a result, they also produce emissions. The first row of the table below shows the total pounds of emissions currently produced by each firm. The other rows of the table show the cost for each firm of reducing emissions by the first 50 tons, the second 50 tons, and so on. The government wants to reduce emissions by one third, and does so by issuing marketable permits based on the current level of emissions where the permits will shrink the allowable amount of pollution by one third.

Alpha will reduce emissions by _______ tons, Beta will reduce emissions by _______ tons, Gamma will reduce emissions by _______ tons, Delta will reduce emissions by _______ tons, for a total cost of _______.

• A) 50, 150, 50, 250, $130
• B) 50, 200, 0, 250, $150
• C) 0, 200, 50, 250, $120
• D) 50, 200, 50, 200, $100

Recognize the factors that lead to the efficiency of the market system, including specialization and division of labor.

Explain the concept of laissez-faire capitalism and its significance within a market economy.

Understand the distinctions between market and command economies, including their impacts on economic outcomes.

Analyze the influence of government and political hierarchy in different economic systems.

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Definitions:

Amount of the Claim

The total sum of money that is being requested or is due in a billing or legal claim.

Custom in the Trade

Established practices and standards widely recognized and accepted within a particular industry.

Judicial Remedy

Legal means through which a court enforces a right, imposes a penalty, or makes another court order to impose its will.

Execution

Execution refers to the carrying out of a plan, order, or course of action to its completion.