In Figure 28

question 42

Multiple Choice

In Figure 28.1,if the rate of output is 320 units,

• A)Social costs exceed private costs at this rate of output.
• B)There is government failure.
• C)Pollution costs are internalized.
• D)Output is less than the socially optimal level.

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Definitions:

Resource Use

The way in which human societies utilize natural resources to fulfill their needs and wants.

Pollution

The introduction of harmful substances or products into the environment, causing adverse effects on living organisms and ecosystems.

Property Rights

Legal rights to own and use property, including rights to exclude others from it, emphasizing the foundation of trade and investment.

Environmental Quality

The condition of the natural environment and its ability to support life, maintain ecological processes, and sustain human activity.