Exhibit 15-1 Production possibilities curves
In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Nabia the cost of producing one more unit of wheat is equal to:

Refer to the data provided in Table 16.4 below to answer the following question(s).Table 16.4 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.4Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$2$21$16$162  6  82 24  4031220332  724204044011253070548160Refer to Table 16.4. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade permits and

all possible trades are made, Firm A will reduce its pollution by a total of ________ units. A. 2 B. 3 C. 4 D. 5

In the neoclassical growth model, an increase in the saving rate will

a. increase the long-run equilibrium rate of growth in output. b. reduce the long-run equilibrium rate of growth in output. c. leave the long-run equilibrium rate of growth in output unchanged. d. affect the long-run equilibrium rate of growth in output but the direction of the effect is uncertain.