Which of the following statements about the economically efficient level of air pollution is correct?
A) The economically efficient level of pollution occurs where the marginal cost of pollution reduction equals the marginal social benefit of reduction.
B) The economically efficient level of pollution occurs where total benefits of pollution reduction are maximized.
C) The economically efficient level of pollution is zero.
D) The economically efficient level of pollution occurs where all social costs equal all social benefits.
A
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Suppose that a city law requires taxi drivers to wear tuxedos. The drivers must pay $10 per week for the tuxedos. Taxicab companies pay their drivers $210 per week. After paying for the tuxedos, taxi drivers earn $200 per week.
(i) If the law were revised so that taxicab companies, not the drivers, must pay for the tuxedos, what would happen to the taxi drivers' earnings? (ii) If the law were repealed, what would happen to the taxi drivers' earnings? Be as specific as possible.
The table below shows the export and import values of automobiles, pharmaceuticals, and clothing in Country A and Country B. Country AExports ($Billions)Imports ($Billions)Automobiles2040Pharmaceuticals3030Clothing400Country BExports ($Billions)Imports ($Billions)Automobiles020Pharmaceuticals4040Clothing4535 Country B has a higher intra-industry trade (IIT) share compared to Country A for
A. only clothing. B. only pharmaceuticals. C. both pharmaceuticals and clothing. D. only automobiles.