Scenario: In Brazil, more than 60 percent of sugar cane grown is harvested by hand. In São Paulo state, nearly 300,000 workers are employed in sugar cane harvesting. Manual harvesting requires burning the cane fields prior to harvest to remove the cane's sharp leaves and drive snakes from the fields. Burning the cane fields, however, gives off large quantities of ammonia and nitrogen oxide, which lead to ozone creation. In São Paulo state, a layer of ash covers cars, and nitrogen oxide levels double during the harvest period. The nitrogen oxide produced from burning the cane fields can lead to acid rain and changes in water quality.
-Refer to the scenario above.The deadweight loss arising from hand-harvesting is represented by area in the graph below.
A) A
B) B
C) C
D) D
Correct Answer:
Verified
Q12: A _ occurs when an economic activity
Q13: The following figure shows the private cost
Q14: When the production of a good involves
Q15: Traffic congestion is an example of a
Q16: An externality occurs when _.
A) the quantity
Q18: The market demand curve for a good
Q19: The following figure shows the private cost
Q20: If negative externalities are present in a
Q21: The following figure shows the market supply
Q22: If positive externalities are present in a
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