Coal produced by strip mining leaves the area that has been mined unusable. To restore the area to its original state costs approximately $10 for every ton mined. Using the coal to generate electricity causes air pollution. To outfit the electric power plant with pollution control devices costs another $10 per ton. The social cost of coal-fired electricity then includes
a. private cost plus the externality costs associated with mining
b. private cost plus the externality costs associated with pollution control
c. the externality costs associated with mining and pollution control
d. private cost plus the externality costs associated with mining and pollution control
e. just the private cost because the externality costs are incorporated in it
D
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National banks are chartered by the
A) Office of the Comptroller of the Currency. B) Office of Bank Supervision. C) Securities and Exchange Commission. D) Office of Management and the Budget.
In applying the lower of cost or market rule, the floor is defined as:
a) current replacement cost b) historical cost c) net realizable value d) net realizable value less a normal profit margin
A shortage will occur if a ________ is set ________ the equilibrium price.
A. price floor; above B. price ceiling; above C. price ceiling; below D. price floor; below
The statement "An increase in the price of gasoline will lead to a decrease in the amount purchased" is
A) a political statement. B) a positive statement. C) a normative statement. D) a scientific statement.