Coal Burning Utilities Release Sulfur Dioxide and Nitric Acid Which

question 173

Multiple Choice

Coal burning utilities release sulfur dioxide and nitric acid which react with water to produce acid rain.Acid rain damages trees and crops and kills fish.Because the utilities do not bear the cost of the acid rain,they overproduce the quantity of electricity.This is illustrated in Figure 5-11.
-Refer to Figure 5-11.S1 represents the supply curve that reflects the private cost of production and S2 represents the supply curve that reflects the social cost of production.One way to internalize the external cost generated by utilities is to impose a Pigovian tax on the production of electricity.What is the size of the Pigovian tax that will internalize the cost of the externality?

• A)P0
• B)P2-P0
• C)P1-P0
• D)P2-P1

Understand the role and responsibilities of the shareholders, board of directors, and officers in a corporation.

Identify the factors and situations that necessitate shareholder approval in a corporation.

Understand the legal limitations and liabilities of corporate directors.

Recognize activities that could result in liability for corporate directors.

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Definitions:

Human Resources Manager

A professional responsible for overseeing the administrative functions of an organization, including recruiting, hiring, and compliance.

Raise

typically denotes an increase in salary or wages given to an employee based on performance, tenure, or negotiation.

Training

The process of enhancing the skills, knowledge, and competencies of employees to perform specific jobs.

Equity Theory

An individual’s perception of fair and equitable treatment.