Much of the Nation's Coal Is Extracted by Strip Mining

question 106

Multiple Choice

Much of the nation's coal is extracted by strip mining. This process leaves a huge barren hole in the ground when complete, and the cost of replanting the trees is approximately $10 per ton of coal. Burning the coal for electricity causes air pollution. No one knows how much damage the air pollution causes, but we know that for another $10 per ton the power plant can be outfitted with a pollution control device. What is one measure of the true social cost of coal fired electricity, in dollars per ton?

• A) Private marginal cost plus the $10 replanting charge.
• B) Private marginal cost plus the $10 emission control charge.
• C) Only the $20 of replanting and emission control charges, because the other costs are private, not social.
• D) Private marginal cost plus the $20 of replanting and emission control charges.
• E) In order to answer this question we need to know the dollar value of the pollution.

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Definitions:

Producing Goods

The process of creating merchandise or commodities that satisfy human wants or needs through various production methods.

Consume Goods

The act of using up or purchasing products or services for direct use by the individual or household, often considered in the context of economic and environmental impact.

Symbolic Interactionist

A perspective in sociology and social psychology that focuses on how individuals interpret and give meaning to social symbols, and how this process affects social interaction and society.

Gift Giving

The act of giving items to others without expecting something of equal value in return, often to show appreciation or to celebrate a special occasion.