Suppose that large-scale pork production has the potential to create ground water pollution. Why might this type of pollution be considered an externality?
a. The groundwater pollution reduces the cost of large-scale pork production.
b. The economic impact of a large-scale pork production facility is localized in a small geographic area.
c. The pollution has the potential for creating a health risk for water users in the region surrounding the pork production facility.
d. Consumers will not reap the benefits of lower production cost from large-scale pork production.
c
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An example of a social insurance program is ____________, whereas an example of a public assistance program is _______
A. Temporary Assistance for Needy Families; unemployment compensation B. Supplemental Security Income; unemployment compensation C. Social Security; Supplemental Nutrition Assistance Program D. Medicaid; Medicare
Suppose a policy change generates $200,000 of benefits for low-income families and $175,000 of costs for high-income and middle-class families. We can best describe the change as
A. potentially efficient. B. equitable. C. Pareto efficient. D. inefficient.
When the price of a good decreases, the budget constraint shifts out parallel to the original budget constraint.
Answer the following statement true (T) or false (F)
Refer to Scenario 14.4. Suppose that a tax is imposed on each unit of the product that John produces. Which curve will shift?
A) Marginal product of labor B) Marginal revenue product of labor C) The supply of labor D) All of the above will shift due to the tax on output.