Which of the Following Statements Is True

question 107

Multiple Choice

Which of the following statements is true?

• A) Unlike other marginal cost curves, the marginal cost curve for pollution emissions is downward sloping.
• B) Command and control is the favored approach of economists for eliminating pollution.
• C) To be effective, emission taxes need to exceed the marginal cost of emissions.
• D) Emissions taxes are an effective way to reduce pollution.

---

Definitions:

Total Revenue

The total amount of money received by a firm from selling goods or services before any costs or expenses are deducted.

Rent-Seeking Activity

Economic practices aimed at increasing one's share of existing wealth without creating new value, often through manipulation or exploitation of the political environment.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at each price point.

Marginal Cost

The incremental expense incurred from the production of an extra unit of a good or service.