The Following Companies All Manufacture Widgets and Dump Tons of Glop

question 6

Multiple Choice

The following companies all manufacture widgets and dump tons of glop into the air. The government wants to halve total pollution but does not know how much it will cost each company. If the government employs a tradable permit scheme in which it gives the same number of permits to each manufacturer at no cost, the total cost of cleanup for Really Dirty Industries, after the exchange of permits, is $____.

• A) 0
• B) 6,000
• C) 7,000
• D) 13,000

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Definitions:

Conditioned Stimulus

A formerly neutral signal that, once linked with an unconditioned stimulus, triggers a conditioned response.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of time without exposure to the conditioned stimulus.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, encouraging the subject to associate certain behaviors with certain outcomes.

Responses

Reactions or answers provided following specific stimuli or situations.