Use the Following to Answer Question

question 27

Multiple Choice

Use the following to answer question:
Figure: Efficiency and Pollution
-(Figure: Efficiency and Pollution) Use Figure: Efficiency and Pollution.Assume that firms are the only beneficiaries of pollution and that costs are borne solely by others in the society.If the government imposed an environmental standard that did NOT allow the quantity of pollution to exceed 30 tons,there would be:

• A)a socially optimal quantity of pollution.
• B)too little pollution because its marginal social benefit would exceed its marginal social cost.
• C)too much pollution because its marginal social cost would exceed its marginal social benefit.
• D)too much pollution because any pollution is too much from an economist's perspective.

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Definitions:

Administrative Rule

Regulations issued by government agencies to implement laws, detailing the standards and procedures for enforcement of those laws.

ALJs

Administrative Law Judges are officials who preside over hearings and dispute resolutions involving federal regulatory agencies.

Professional Merit Selection

A system of appointment based on qualifications and performance rather than political connections or personal favoritism.

President

The elected head of a republican state or organization, holding the highest office and often acting as the chief executive or ceremonial figurehead.