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Suppose That Company A's Railroad Cars Pass Through Farmer B's

question 86

Multiple Choice

Suppose that Company A's railroad cars pass through Farmer B's corn fields. The railroad causes an externality to the farmer because the railroad cars emit sparks that cause $1,500 in damage to the farmer's crops. There is a special soy-based grease that the railroad could purchase that would eliminate the damaging sparks. The grease costs $1,200. Suppose that the farmer has the right to compensation for any damage that his crops suffer. Assume that there are no transaction costs. Which of the following characterizes the efficient outcome?

Understand the concept of transfer payments within government expenditures.

Assess the implications of demographic changes on government spending.

Differentiate between the costs to the private sector of government taxation and spending.

Identify the structure and impact of the federal tax system on different income groups.

Definitions:

Information Systems

Systems that manage and process data to support decision-making and operations in an organization.

Big Data

Information collected in massive amounts and at unprecedented speed from both traditional and digital sources that is used in business decision making; complex structured or unstructured sets of information that traditional processing applications are unable to analyze.

Structured

Organized in a predictable, efficient, and systematic manner to facilitate processes, projects, or information management.

Unstructured

Refers to data or information that doesn't have a pre-defined model or organization, making it difficult to process and analyze without specialized tools.