Environmentalists, Worried About Sulfur Dioxide in the Air, Pressure the Government

question 46

Multiple Choice

Environmentalists, worried about sulfur dioxide in the air, pressure the government to require bus manufacturers to modify exhaust systems in buses.In this situation,

• A)benefits of the proposed requirements are more widespread than costs
• B)benefits and costs of the proposed requirements are equally widespread because producers of buses will pass cost increases on to bus companies who will increase fares
• C)pressure for government regulation is unnecessary because those who use buses will stop riding buses if they don't have cleaner emissions
• D)bus riders are more likely to lobby against the proposal than are bus producers
• E)bus riders are more likely to lobby against the proposal than are bus workers

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Definitions:

Property Rights

The legal rights to possess, use, and dispose of assets, property rights are foundational to free market economies and influence resource allocation and investment.

Marginal Benefits

The additional satisfaction or utility gained from consuming or using one more unit of a good or service.

Marginal Social Cost

The total cost to society of producing one additional unit of a good or service, considering both the direct costs and any externalities.

Environmental Disaster

A catastrophic event that significantly harms the natural environment and leads to negative impacts on human health and well-being.