In General, the Economist's View on Allocating Resources to Reduce

question 4

Multiple Choice

In general, the economist's view on allocating resources to reduce pollution is that

• A) government policies to reduce pollution have zero opportunity cost.
• B) the reduction of pollution should proceed up to the point where the marginal cost of pollution reduction equals the marginal benefit to society.
• C) all forms of water and air pollution should be eliminated.
• D) the extent of pollution reduction should be based only on a comparison of total costs and total benefits to the environment.
• E) it is not allocatively efficient to reduce pollution.