Much of the nation's coal is extracted by strip mining. This process leaves a huge barren hole in the ground when complete, and the cost of replanting the trees is approximately $10 per ton of coal. Burning the coal for electricity causes air pollution. No one knows how much damage the air pollution causes, but we know that for another $10 per ton the power plant can be outfitted with a pollution control device. What is one measure of the true social cost of coal fired electricity, in dollars per ton?
A. Private marginal cost plus the $10 replanting charge.
B. Private marginal cost plus the $10 emission control charge.
C. Only the $20 of replanting and emission control charges, because the other costs are private, not social.
D. Private marginal cost plus the $20 of replanting and emission control charges.
Answer: D
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A) an equity report. B) a balance sheet. C) statement of cash flow. D) an income statement.
Positive economics
a. postulates relationships among economic variables that are potentially refutable by real-world events. b. is strictly quantitative and is, therefore, of little value to policy makers. c. will usually indicate which economic policy is best. d. is the same as normative economics.
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a. European goods have become less expensive for Americans. b. American goods have become less expensive for Europeans. c. American exports to Europe are likely to increase. d. American imports from Europe are likely to decrease.
When a large amount of output is produced per unit of the input, the input is said to exhibit
A. high productivity. B. derived productivity. C. low productivity. D. marginal productivity.