If Coal Mining Produces a Negative Externality Because It Leads

question 181

Multiple Choice

If coal mining produces a negative externality because it leads to environmental damage, then, at the market equilibrium, the:

• A)price of coal will be higher than the socially optimal price.
• B)quantity of coal produced will be less than the socially optimal quantity.
• C)quantity of coal produced will be greater than the socially optimal quantity.
• D)supply curve will lie to the left of the regulated supply curve.

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Definitions:

Speeds

Rates at which an object covers distance, often measured in units like miles per hour or kilometers per hour.

ANOVA Table

A statistical table used to analyze the differences among group means in a sample by comparing variance estimates.

F-ratio

a statistical measure used in the analysis of variance (ANOVA) to compare the variance between groups to the variance within groups.

P-value

The probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is correct.