-The Figure Above Provides Information for a Factory That Produces

question 345

Multiple Choice

-The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. If no property rights exist on the waterway and if there is no regulation of pollution, then the factory produces ________ of chemicals a week.

• A) 1 ton
• B) as many tons as possible
• C) 3 tons
• D) 5 tons

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Definitions:

Specialization

The practice of focusing resources on the production of specific goods or services to increase efficiency and expertise.

Total Output

The total quantity of goods or services produced by a firm or economy over a specific period.

Invisible Hand

The concept that the self-regulating nature of the marketplace leads to the efficient allocation of resources through individuals pursuing their own self-interest, originally introduced by Adam Smith.

Federal Government

A system of government in which power is divided between a central authority and constituent political units, such as states or provinces.