Suppose the Government Limits the Amount of Pollution from Cars

question 70

Multiple Choice

Suppose the government limits the amount of pollution from cars by capping the amount of pollution they can emit to 30 pounds of carbon dioxide per car per year. If Alex was willing to pay $50 to emit an extra pound of carbon dioxide and Tyler was willing to sell a pound of his allowance for $30, would it be efficient for them to make this trade?

• A) No, it would raise the cost of pollution abatement.
• B) Yes, it would lower the cost of pollution abatement.
• C) It is impossible to say whether this would or would not be an efficient trade.
• D) There is no incentive for Alex and Tyler to trade.

Comprehend the debate between the influence of nature and nurture on language development.

Evaluate the evidence supporting the existence of a universal grammar.

Understand the concepts of marginal product and its relationship to the production output.

Identify and calculate marginal cost and average fixed cost for a given level of production.