When the Government Attempts to Reduce the Noise from Airplanes

question 105

Multiple Choice

When the government attempts to reduce the noise from airplanes by restricting the noise level from a jet engine to less than 50 decibels,it is using a(n) :

• A)environmental standard.
• B)emissions tax.
• C)Pigouvian tax.
• D)tradable emissions permit.

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Definitions:

Accounting Profit

Accounting profit is the net income a company reports on its financial statements, calculated as total revenues minus explicit costs and depreciation.

Marginal Product

The extra production obtained by employing an additional unit of a variable resource, while keeping the rest of the inputs unchanged.

Fixed Cost

Expenses that do not change in the short term regardless of the level of production or output.

Average Fixed Cost

The fixed costs of production (costs that don't change with the level of output) divided by the quantity of output produced.