If the Firecat Charcoal Factory Is Able to Release Black

question 144

Multiple Choice

If the Firecat charcoal factory is able to release black smoke into the air, it will then tend to

• A) produce more than it would if it had to contain the smoke.
• B) produce at a point at which the quantity demanded equals the socially optimal quantity supplied.
• C) add the social cost of the smoke to the price of the charcoal.
• D) underproduce because the social costs are added to the private costs.

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Definitions:

Physical

Relating to the body as opposed to the mind or emotions; involving or characterized by material substances or physical activities.

Psychological

Pertaining to the mind and mental processes, including emotions, thoughts, behaviors, and well-being.

Hierarchy of Needs Model

A psychological theory proposed by Abraham Maslow that posits a five-tier model of human needs, from basic (physiological) to higher-level (self-actualization) needs.

Years of Age

A phrase denoting the specific age of an individual or object, calculated by the number of years lived since birth.