The Last-Value Forecasting Method

question 32

Multiple Choice

The last-value forecasting method:

• A) is quick and easy to prepare.
• B) is easy for users to understand.
• C) ignores all values except one.
• D) All of the answers choices are correct.
• E) None of the answer choices is correct.

---

Definitions:

Marginal Social Cost

The additional cost incurred by society as a whole due to the production of one more unit of a good or service.

Damage Cost

The monetary cost associated with the harm done to goods in an economy, which can result from disasters, accidents, or intentional acts.

Negative Externality

An adverse effect suffered by a third party as a result of an economic transaction in which they had no involvement.

Internalize

The process of incorporating the cost of externalities into the decision-making process of firms or individuals.