When Logging in the Pacific Northwest Destroys Forests That Hikers

question 23

Multiple Choice

When logging in the Pacific Northwest destroys forests that hikers would have used for eco-tourism,the destruction of the trails is an example of

• A) an external cost.
• B) a private cost.
• C) a government cost.
• D) an external benefit.
• E) None of the above answers is correct.

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Definitions:

Clayton Act

A U.S. legislation enacted in 1914 aimed at promoting competition among businesses by prohibiting certain practices that would lead to antitrust issues.

Herfindahl Index

A measure of the concentration and competitiveness of an industry; calculated as the sum of the squared percentage market shares of the individual firms in the industry.

Horizontal Merger

The merger into a single firm of two firms producing the same product and selling it in the same geographic market.

Clayton Act

A U.S. antitrust law passed in 1914, aimed at increasing economic competition and preventing monopolies by prohibiting specific types of conduct that could harm competitors.