Which factor of production accounts for the highest percentage of the income that the production process generates in the United States?

The optimum tariff is most likely to apply to

A) a small tariff imposed by a small country. B) a small tariff imposed by a large country. C) a large tariff imposed by a small country. D) a large tariff imposed by a large country. E) an ad valorem tariff on a small country.

Suppose a firm wants to build a new factory that would add pollution to an already polluted area. Under an offset program, the firm must:

a. install scrubbers and other government-mandated equipment. b. purchase pollution permits from the government. c. reduce or eliminate an old pollution source in the area. d. pay a tax which depends on the amount of pollution created.