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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Under a gold standard, if the market price of gold is below the official price of gold (set by the monetary authority), people will be more likely to sell gold __________________, which will cause the money supply to _______________ and the price level.to _______________
A) to the monetary authority; fall; fall B) to the monetary authority; rise; rise C) in the gold market; fall; fall D) in the gold market; rise; rise
Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Assume Mr. Lingle is on budget constraint AC. If the price of a beer is $5, Mr. Lingle's monthly income is
A. $40. B. $80. C. $100. D. $200.