The Striking Dock Workers on the West Coast Refused to Unload

question 3

Multiple Choice

The striking dock workers on the west coast refused to unload the ships carrying merchandise for retail stores.These stores suffered loss of revenue during the Christmas season,their highest earnings period of the year.This revenue reduction is ________________ that ___________ covered by insurance.

• A)a direct loss,can be
• B)indirect loss,can be
• C)direct loss,cannot be
• D)indirect loss,cannot be

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Definitions:

Scrap

Discarded waste material, especially metal suitable for reprocessing or remnants from manufacturing processes.

Welfare Losses

Economic inefficiencies that occur when there is a divergence from optimal supply and demand conditions, leading to a net loss in social welfare.

MSC

Marginal Social Cost; the total cost to society of producing an additional unit of a good, including both private costs and any external costs.

MEC Curve

A graphical representation showing the marginal external costs associated with the production of additional units of a good.