Recall the Application About the Best Speed at Which to Sail

question 26

Multiple Choice

Recall the Application about the best speed at which to sail an ocean cargo ship to answer the following question(s) .
-Saving time by driving faster is an example of a ________ of driving faster. Increasing the severity of injuries from a potential accident due to driving faster is a(n) ________ of driving faster.

• A) nominal cost; real cost
• B) marginal cost; nominal cost
• C) marginal benefit; marginal cost
• D) normative benefit; opportunity cost

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to a state of market balance.

Equilibrium Quantity

The quantity of goods or services demanded equals the quantity supplied at the market price, resulting in market equilibrium.

Excise Tax

A tax levied on the sale of specific goods and services, such as tobacco, alcohol, and fuel.

Levied

Imposed or collected (usually a tax, fine, or other charge) by authority or force.