Assume the Social Marginal Benefit of Remote-Control Drone Flights Is

question 8

Multiple Choice

Assume the social marginal benefit of remote-control drone flights is given by SMB = 200 - 2Q and the marginal cost is given by MC = 3Q + 50. The government wants to correct the negative externality associated with remote-control drone flights by taxing operators $20 per flight. If the proposed tax accurately reflects their marginal external costs, the deadweight loss associated with unrestricted remote-control drone flights is _____.

• A) 30
• B) 35
• C) 40
• D) 45

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Definitions:

Normative

Relating to an evaluative standard or norm, often concerning what is normal or expected in society.

Social Obligation

The responsibilities or duties that individuals are expected to fulfill in a society or community.

Bystander-Calculus Model

A theoretical model that explains the decision-making process of bystanders in emergency situations, considering factors like perceived danger and group cohesion.

Cognitive Processes

Cognitive processes involve the mental actions or operations that support learning, understanding, decision-making, and memory, among other intellectual tasks.