Automobile Emissions Generate Pollution and Cause Higher Costs and Discomfort

question 36

Multiple Choice

Automobile emissions generate pollution and cause higher costs and discomfort to residents of a city.In this case:

• A) too few of society's resources are being used to operate automobiles.
• B) the externality can be internalized into the market by imposing a specific tax on drivers.
• C) there is an external benefit to society from operating automobiles.
• D) the externality can be internalized into the market by granting a specific subsidy to drivers.

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Definitions:

Accounts Receivable

Amounts due to a firm from its customers for delivered services or products that remain unpaid.

Factory Overhead

Refers to the indirect manufacturing costs that are not directly tied to the production of goods, such as utilities, maintenance, and rent of the factory building.

Direct Labor Costs

Expenses related to the wages of employees who are directly involved in the production of goods or delivery of services.

Cost of Materials Used

The total cost of raw materials that have been consumed in the production process, directly contributing to the manufacture of products.