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.

---

Definitions:

Private Consumptions

Refers to the spending on goods and services by individuals or households rather than by the government or businesses.

Total Amount

The entire sum or quantity of something, often referring to a final total in financial contexts.

Utility Function

A numerical depiction of the ranking of a consumer's preferences among various products or results.

Private Consumptions

Expenditure by households and non-profit institutions serving households on goods and services used for individual consumption.