Many States Charge a 10-Cent Deposit on Every Can of Soda

question 107

Multiple Choice

Many states charge a 10-cent deposit on every can of soda sold.A purchaser pays an extra 10 cents per can and will get his money back by returning the empty can to a store.This policy encourages recycling by

• A)increasing the supply of recyclable materials.
• B)shifting in the demand curve for canned soda.
• C)raising the opportunity cost of discarding empty cans.
• D)taxing the production of canned soda.

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Definitions:

Production Possibility Frontier

An illustration indicating the top production capabilities for a pair of items, given certain inputs like resources.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in the production process.

Capital Stock

Capital Stock represents the total physical or financial assets that a company utilizes for production, including buildings, machinery, and equipment.

Production Possibility Frontier

An illustration representing the peak production capabilities of two items, based on available resources.