The Pollution Created When Coal Is Burned by Utilities to Generate

question 327

Multiple Choice

The pollution created when coal is burned by utilities to generate electricity is an example of

• A) a marginal benefit to coal producers.
• B) a welfare cost.
• C) an external cost.
• D) a cost paid by the utilities.

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Definitions:

Outsourcing

The business practice of hiring third parties to perform services or create goods that were traditionally performed in-house.

Make or Buy

A decision-making process used by companies to determine whether they should produce goods internally or purchase them from an external supplier.

Indirect Spend

Expenses incurred for materials, services, and maintenance that do not directly contribute to the production of goods.

Direct Spend

Expenses directly tied to the production of goods or services, such as raw materials and labor.