The Socially Efficient Scale Maximizes the Net Social Benefits from a Project

question 13

Multiple Choice

The socially efficient scale maximizes the net social benefits from a project because

• A)consumer preferences as revealed in market prices are maximized where MAC=MDC.
• B)damages are minimized where MAC=MDC.
• C)total abatement costs are less that total damage costs where MAC=MDC.
• D)net social benefits are maximized where MAC = MDC.

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Definitions:

Projected Benefit Obligation

An actuarial estimate of the total value of future pension benefits owed to employees, based on their service and salary history, to be paid by a pension plan.

Pension Plan Assets

The resources set aside by a company to meet future pension obligations to retirees, usually in the form of investments.

Actuarial Assumptions

Hypothetical conditions used for projecting financial or insurance outcomes, involving demographic, economic, and other factors.

Prior Service Cost

The cost associated with the increase in pension benefits related to years of service credited in a pension plan amendment.