Suppose the government limits the amount of pollution from cars by capping the amount of pollution they can emit to 30 pounds of carbon dioxide per car per year. If Alex were willing to pay $50 to emit an extra pound of carbon dioxide and Tyler were willing to sell a pound of his allowance for $30, would it be efficient for them to make this trade?

Some researchers estimate that all saltwater fish will be extinct by 2048, in large part due to overfishing. But surveys also show that more households eat chicken and beef than fish; however, neither chickens nor cattle are in danger of extinction. Which of the following best explains these observations?

Background: One provision of the 2010 Patient Protection and Affordable Care Act (commonly known as “Obamacare”) required large employers to provide health insurance to full-time employees. For the purposes of this question, assume that employers are required to pay the full cost of the insurance premium. Question: Once the labor market adjusts to this policy, which side—employers or employees—is likely to bear the greater economic burden of the mandate? Explain your reasoning.

Burning coal to generate electricity can create pollution. If the market for generating electricity from coal is competitive and is allowed to operate without any government intervention, is the resulting equilibrium quantity of coal burned equal to, more than, or less than the efficient quantity? Be sure to explain your answer.

In 2005, Ireland began taxing residents on how much garbage they threw away in an effort to promote recycling. In response, residents began burning trash (which is environmentally more harmful and resulted in an increase in burn victims as people accidentally set themselves on fire). This story suggests that the elasticity of demand for trash collection was more _____ than lawmakers believed because _____ than previously thought.

Marge tutors English students. If she raises rates, her revenues increase. Brad tutors biology students. If he lowers rates, his revenues increase. Which of the following is TRUE?

African elephant populations have declined by more than 50% over the past 20 years due mostly to the slaughter of these beautiful animals for their ivory tusks. Neither government bans on the hunting of these elephants nor a worldwide ban on the sale of ivory has been able to help increase elephant populations. A handful of African countries, however, established systems of private property rights over elephants—essentially assigning ownership of the elephants to individuals. a) Will this new system of private rights help to increase elephant populations? Explain why or why not. b) Will this new system eliminate elephant hunting (both legal and illegal)? Be sure to explain your reasoning.

Over the past 50 years, technological innovations have significantly decreased the costs associated with farming and the production of food. At the same time, however, revenue associated with farming has also decreased significantly, cutting into farmers’ profits. Using the concept of elasticity of demand, explain why farmers’ profits have been falling as costs of production have also been falling.

Command and control methods for pollution do not always lead to the most efficient outcomes because:

The supply curve for manufactured goods is usually more elastic than for raw materials because production of manufactured goods can often be: