The _________ Criterion Is the Alternative Associated with the Highest

question 201

Multiple Choice

The _________ criterion is the alternative associated with the highest payoff in the decision table.

• A)maximax
• B)minimax regret
• C)equally likely
• D)maximin

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Definitions:

Optimal Tax

A tax designed to generate government revenue with the minimum economic distortion or welfare loss.

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both the cost to the producer and the cost of any negative externalities associated with production.

Marginal Social Benefit

Marginal social benefit is the additional gain to society as a whole from producing one more unit of a good or service.

Emissions Tax

A tax levied on the emission of pollutants, aimed at reducing the level of harmful emissions released into the environment.