A Change in Regulations Increases the Size of the Airplanes

question 48

Multiple Choice

A change in regulations increases the size of the airplanes that can fly into a local regional airport.The increase in average plane size increases noise pollution considerably.If compensation is to be paid to those harmed by this externality,the most efficient form of compensation would be _____.

• A)a lump sum payment
• B)a payment per violation
• C)a set payment every month
• D)regular payments equal to the monthly cost imposed on homeowners

Appreciate the role and limits of economic models and theories in explaining real-world phenomena.

Recognize the importance of investment in accumulating capital goods.

Understand the scientific method's application to economics and its relevance in studying human behavior.

Understand the broad categories of economic resources and their examples.