Which of the Following Illustrates the Principle of Second Best

question 22

Multiple Choice

Which of the following illustrates the principle of second best?

• A) The government imposes taxes on gasoline, and the tax revenue collected is used to pay for road repair.
• B) The government decides to impose taxes on all grains, rather than imposing a tax only on wheat.
• C) The government imposes a tax on a paper manufacturer that equals the cost of cleaning the river damaged by the waste discharged into the river by the paper manufacturer.
• D) A tax imposed on land, because this tax distorts economic decisions less than taxes on other factors of production.

Grasp the legal consequences of cancellation, reacquisition, and ratification concerning negotiable instruments.

Understand the warranties involved and the implications of an instrument's alteration or forgery.

Understand the historical and contemporary experiences of discrimination and racism faced by South Asian Americans.

Grasp the complexities and dilemmas faced by South Asian Americans when dealing with group identity and census classification.

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Definitions:

Average Fixed Cost

The fixed cost per unit produced, calculated by dividing total fixed costs by the quantity of output produced.

Marginal Cost

The charge for generating one more unit of a good or service.

Total Variable Cost

Total variable cost is the sum of all costs that vary directly with the level of production or output, such as materials and labor.

Marginal Cost

The added cost of producing one additional unit of a product or service.