Many Economists Believe That There Are More Efficient Ways to Deal

question 121

Multiple Choice

Many economists believe that there are more efficient ways to deal with pollution than with environmental standards because these standards do NOT:

• A)reduce pollution enough.
• B)allow reductions in pollution to be achieved at minimum cost.
• C)specify the behavior that needs to be changed.
• D)target behaviors in a way that can be enforced.

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Definitions:

Utility Function

A mathematical representation that shows the relationship between an individual’s consumption bundle and their level of satisfaction or utility.

Flood Insurance

A policy that covers property damage and loss caused by flooding.

Utility Function

A utility function represents a consumer's preference for a set of goods and services, showing satisfaction levels for different consumption bundles.

Stock Market

A public market for the trading of company stock and derivatives at an agreed price; it is a key component of the economy.