In Cost-Benefit Analysis,the Government Should Intervene in Environmental Affairs as Long

question 91

Multiple Choice

In cost-benefit analysis,the government should intervene in environmental affairs as long as

• A)The government corrects market failures without government cost.
• B)The value of government failure exceeds the value of market failure.
• C)The improvement in the environment exceeds the costs.
• D)The government corrects market failures despite government failure.

Understand the role of the United Nations Convention on the Use of Electronic Communications in International Trade (ECC) and other conventions on international business practices.

Analyze regulatory efforts to tax e-commerce transactions and the impact on online travel companies.

Understand the purpose and legal status of international conventions issued by the United Nations Commission on International Trade Law.

Recognize the importance of cultural awareness in international business negotiations and contract formation.

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Definitions:

Fixed Costs

Costs that do not change with the level of output produced by a firm, such as rent, salaries, and equipment costs.

Average Total Cost Curve

A graphical representation of the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Diminishing Marginal Returns

A principle stating that as more of a variable input is added to a fixed input, the additional output from each new unit of input will eventually decrease.

Average Total Cost Curve

A graphical representation showing the cost per unit of output when fixed and variable costs are summed up and divided by the total output.