Economic Analysis of the Optimal Amount of Pollution Is Typically

question 67

Multiple Choice

Economic analysis of the optimal amount of pollution is typically done in terms of the amount of pollution abated,as opposed to the amount of pollution produced.Why?

• A)Because it is more practical to measure the marginal costs of pollution abated than of pollution produced.
• B)Because governments and environmental authorities can produce more reliable data on pollution abated than pollution produced,which facilitates the economic analysis.
• C)Because the abatement of pollution is a "good" to which we can more easily apply the concepts of supply and demand.
• D)Because there are no marginal benefits of pollution produced,so it is necessary to study pollution abated in order to equate marginal benefits and marginal costs.
• E)All of the above are correct.

Know the empirical methods to improve cognitive performance in various age groups.

Understand and calculate the economic order quantity (EOQ) for inventory management.

Comprehend and determine the break-even default percentage for credit sales.

Analyze and calculate effective annual interest rates under various payment terms.

---

Definitions:

Additional Information

This term refers to extra or supplementary data provided beyond what was originally given or required.

Stochastic Probability

Involves randomness and uncertainty, it is the probability approach used to model and predict outcomes in situations where exact outcomes are unpredictable.

Transitional Probability

Calculated as the proportion of employees, or the number of employees who have historically resided in a given employment state divided by the total number of employees in the job. The transitional probability of termination for a job that has 10 employees and historically has seen 2 leave every year is 2/10, or 20 percent.

Markov Model

A mathematical model that accounts for transitions from one state to another in a system, where the probability of each state depends only on the current state and not on the history of states.