Which of the following is correct?
a. U.S. International trade represents about 50 percent of U.S. GDP.
b. Less than 5 percent of world output is sold in a country different from the one in which it is produced.
c. Without tariff protection the number of jobs available to domestic workers would decline.
d. The volume of international trade has grown rapidly.
Question 2
Factory A can reduce emissions at a cost of 150 per ton. Factory B can reduce emissions at a cost of 115 per ton. In a system in which the government issues transferable pollution right at a price of 200 per ton:
a. Factory A can profit from selling its pollution rights to Factory B.
b. Both firms have an incentive to buy pollution rights.
c. Factory B can profit from selling its pollution rights to Factory A.
d. Both firms have an incentive to sell pollution rights.
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