Refer to the above table. Assuming constant opportunity costs, which of the of the following statements is correct if the rate of exchange is 1 movie for 1 cuckoo clock
A) U.S. residents would be willing to export cuckoo clocks, but Swiss residents would not gain from exporting movies at this rate of exchange.
B) Swiss residents would be willing to export movies, but U.S. residents would not gain from exporting cuckoo clocks at this rate of exchange.
C) U.S. residents will gain from exporting movies and Swiss residents will gain from exporting cuckoo clocks at a rate of exchange.
D) U.S. residents will gain from exporting cuckoo clocks and Swiss residents will gain from exporting movies at a rate of exchange.
C
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a. factories b. sulfur dioxide (i.e., acid rain) c. cars d. chemicals (used in pesticides and fertilizers) and sewage e. garbage
The automobile emission standards in the United States are established by
a. automobile producers b. efficient free markets c. the Environmental Protection Agency (EPA) d. automobile owners because they are free to buy whatever gasoline they want e. international standards designed by the United Nations