Marginal external costs are
a. additional unpriced costs imposed on society by producing one more unit of a good
b. the cost of damaged goods
c. the additional cost of imported goods
d. the total cost to society of producing a good
e. the marginal cost divided by the marginal revenue
A
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Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Firm X ($/day) $500$514$530$555$585 Cost to Firm Y ($/day) $400$420$445$480 $520Cost to Firm z ($/day) $300$325$360$400 $550Suppose the government decides to impose a tax on each ton of smoke emitted. What would be the lowest tax, in whole dollars, that would reduce emissions to 6 tons per day?
A. $36 per ton B. $21 per ton C. $26 per ton D. $41 per ton
The changing of government expenditures or taxes to achieve national economic goals is
A) inflationary fiscal policy. B) automatic fiscal policy. C) recessionary fiscal policy. D) discretionary fiscal policy.
According to economic theory, a politician will accept an invitation for another photo opportunity as long as
A) she is paid well. B) he can be sure he will look handsome in the picture. C) the marginal benefit exceeds the marginal cost. D) there are no costs involved.
Which of the following does not hinder economic development?
a. lack of education b. poor agricultural productivity c. low investment in human capital d. lack of technology e. good nutrition