Use the Following to Answer Question

question 142

Multiple Choice

Use the following to answer question:
Figure: MSB and MSC of Pollution
-(Figure: MSB and MSC of Pollution) Use Figure: MSB and MSC of Pollution.Assume that firms are the only beneficiaries of pollution and that costs are borne solely by others in the society.If the current level of pollution is at Q₁,_____ pollution is being emitted because _____.

• A)not enough;MSB > MSC
• B)not enough;MSB < MSC
• C)too much;MSB > MSC
• D)the socially optimal amount of;MSB = MSC

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Definitions:

Sensory Memory

The shortest-term element of memory that acts as a buffer for stimuli received through the senses, briefly retaining impressions of these stimuli.

Semantic Memory

Semantic memory is a type of long-term memory that involves the storage of general knowledge and facts about the world, not linked to personal experience.

Working Memory

A cognitive system responsible for temporarily holding information available for processing.

Crystallized Intelligence

The capacity to apply acquired knowledge and past experiences to tackle problems and adjust to novel circumstances.