A Five-Cent Container Deposit on Bottles

question 77

Multiple Choice

A five-cent container deposit on bottles

• A)Decreases the incentive to recycle.
• B)Increases the incentive to recycle.
• C)Makes it more profitable for firms to use these containers.
• D)Encourages pollution.

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Definitions:

Marginal Cost

The financial outlay involved in producing an additional unit of a product or service.

Resources

The total means available for economic and political development, such as minerals, labor, and capital.

Pareto Optimal

A situation in economics where resources are allocated in the most efficient manner, making it impossible to reallocate without making at least one individual worse off.

Trades

The action of buying and selling goods and services, which can occur domestically within a country or internationally between countries.