Table 2-3 Production Choices for Dina's Diner

question 145

Multiple Choice

Table 2-3
Production Choices for Dina's Diner

-Refer to Table 2-3.Dina faces ________ opportunity costs in the production of sliders and hot wings.

• A)increasing
• B)decreasing
• C)constant
• D)negative

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Definitions:

Pollution Tax

A tax imposed on the emission of pollutants, aimed at reducing environmental damage by encouraging cleaner production and consumption practices.

Positive Externalities

Benefits experienced by third parties or society at large from an economic transaction, such as improved public health or education levels, not reflected in market prices.

Subsidies

Financial support from the government to businesses, individuals, or other governmental bodies to encourage or maintain an activity that has a public good.

Liability Rules

Legal principles that determine how the responsibility for damages or losses is allocated among parties in legal disputes.