In 2017, Economists Working at the U

question 239

Multiple Choice

In 2017, economists working at the U.S.Department of Treasury's Office of Tax Analysis have estimated that the marginal social cost of carbon dioxide emissions was about

• A)$7 per metric ton.
• B)$32 per metric ton.
• C)$49 per metric ton.
• D)$70 per metric ton.

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Definitions:

Least-Squares Regression

A statistical approach that finds the optimal fitting line by reducing the sum of the squares of the discrepancies between the actual and forecasted values.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and direct labor.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums, providing stability in expense planning.

Least-Squares Regression

A statistical technique used to find the line of best fit for a set of data, minimizing the sum of the squares of the differences between the observed and predicted values.