Suppose That the EPA Has Proposed Strict Controls on the Amount

question 124

Multiple Choice

Suppose that the EPA has proposed strict controls on the amount of sulfur that diesel fuel contains. These controls were designed to fully offset the cost of pollution generated by diesel fuel vehicles. The effect of the regulation is estimated to increase the equilibrium price of a gallon of diesel fuel by 10 cents. Assuming that the supply of diesel fuel has a positive slope and demand has a negative slope, one can infer that the EPA determined that:

• A)the external benefit of using diesel fuel is less than 10 cents.
• B)the external cost of using diesel fuel is greater than 10 cents.
• C)the external cost of using diesel fuel is less than 10 cents.
• D)the external cost of using diesel fuel is equal to 10 cents.

---

Definitions:

Resource Utilization

The efficient and effective use of resources such as time, money, and materials within an organization or project.

Task-Oriented

An approach or behavior focused primarily on completing tasks or achieving objectives, often emphasizing efficiency and productivity.

Relations-Oriented

Focus on building and maintaining strong interpersonal relationships within a team or organization to facilitate teamwork and collaboration.

Behaviors

The actions or reactions of an individual or group in response to external or internal stimuli.