Producers will take external costs into account when:
A. they actually have to pay those costs.
B. environmental groups apply sufficient pressure and generate negative press coverage.
C. those costs are less than the benefits.
D. those costs are less than the private costs.
Answer: A
You might also like to view...
Between 1960 and 2010, the labor force participation rate for men
A) decreased in most years. B) increased in most years. C) did not change. D) fluctuated, first rising until about 1989 and after that, then falling. E) did not change until 1992, after which it generally increased.
The processes a firm uses to turn inputs into outputs of goods and services is called
A) marginal analysis. B) positive economic analysis. C) technology. D) technological change.
If featherbedding raises the price of output produced by the union workers, it
a. increases employment at the firm and in the industry b. decreases employment at the firm and in the industry c. increases employment at the firm but may decrease it in the industry d. decreases employment at the firm and increases it in the industry e. increases employment at the firm but reduces the number of firms so that there is no net effect on industry employment
Because private owners are held responsible for damages their property causes to the property of others, private owners have
a. a strong incentive to take steps to reduce the chance that they will harm the property of others. b. a strong incentive to use their property now rather than conserving it for the future. c. little incentive to take good care of the property. d. little incentive to consider the harm their property may do to the property of others.