Many Special Interest Groups Assert That the Environment Should Be

question 35

Multiple Choice

Many special interest groups assert that the environment should be protected irrespective of the cost.This would imply that the environment is priceless - it has infinite value.If this is true, which of the following policies would be passed by a cost-benefit analysis?

• A)banning international transport by sea to protect endangered whales from fatal ship-collisions
• B)banning fishing to prevent turtles or dolphins being caught as by-catch
• C)banning wind-power plants to prevent rare birds getting killed in the blades
• D)all of the above

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Definitions:

Input Decisions

Concerns the selection and use of resources, such as labor, materials, and capital, that are required for the production of goods or services.

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust fully to changes.

Lemonade Stand

A small business venture, often used as an example for basic business principles, where lemonade is sold, typically by younger entrepreneurs.

Fixed Cost

Expenses that do not vary with the level of output or sales, such as rent, salaries, or insurance premiums.