The Figure Given Below Shows the Demand for Permits and the Maximum

question 111

Multiple Choice

The figure given below shows the demand for permits and the maximum permissible level of pollution. Figure 13.4 In the figure,
The downward sloping line is the demand curve of permits;
The vertical line denotes the maximum permissible limit of pollution.
In Figure 13.4, if the government sells Q_b permits to pollute at a price of P_b each, then:

• A)the allocation of pollution reduction is inefficient.
• B)firms in the market will be forced to shut down due to excessive government regulation.
• C)the allocation of pollution reduction is efficient, because only those firms with a marginal cost of pollution reduction greater than P_b will buy the permits.
• D)the allocation of pollution reduction is efficient, because only those firms with a marginal cost of pollution reduction less than P_b will buy the permits.
• E)the allocation of pollution reduction is inefficient, because only those firms with the lowest costs of pollution reduction will purchase the permits.

Identify exceptions to mandatory retirement age and understand their legal basis.

Recognize the role and responsibilities of the Equal Employment Opportunity Commission (EEOC) in administering the Age Discrimination in Employment Act (ADEA).

Understand the concept of bona fide occupational qualifications (BFOQ) and how it applies to age discrimination.

Comprehend the statutory exceptions for certain professions regarding mandatory retirement age.

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Definitions:

Millimeters

A unit of length in the metric system equal to one thousandth of a meter, commonly used worldwide for many measurements.

Lettering

The practice of adding textual information, such as notes and dimensions, to engineering drawings in a standardized manner.

Pictorial Drawing

A type of drawing that represents three dimensions of an object in one view, providing a realistic view of an object, making it easier to understand its shape and features.