Use the Following to Answer Questions

question 177

Multiple Choice

Use the following to answer questions:
Figure: Palm Oil
-(Figure: Palm Oil) Refer to the figure. Indonesian palm oil producers deforest tropical rainforests to grow the plants that excrete the oil. With this externality, what is the deadweight loss (if any) of producing palm oil?

• A) $100,000,000
• B) $200,000,000
• C) $400,000,000
• D) There is no deadweight loss.

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Definitions:

Reaction

A process resulting in the transformation of chemical substances into others through the breaking and formation of chemical bonds.

Organic Product

Chemical compounds produced by living organisms, typically characterized by their carbon-based structure.

Hydrophobic

Characteristic of molecules or parts of molecules that repel water or do not mix with water.

1-butanol

An organic compound, part of the alcohol family, with the formula C4H9OH, characterized by a four-carbon chain.