Refer to the Information Provided in Figure 16

question 162

Multiple Choice

Refer to the information provided in Figure 16.4 below to answer the question(s) that follow.
Los Angeles International Airport (LAX) is located next to Playa Del Rey. The noise from air traffic negatively affects individuals living in Playa Del Rey, however, this cost is not considered by airlines or air travelers. The airlines feel they have a right to use the airspace while the individuals living in Playa Del Rey feel they have the right to quiet. The following diagram depicts the marginal costs and marginal benefits associated with air travel. Figure 16.4
-Refer to Figure 16.4. Suppose the government assigns property rights to the residents of Playa Del Rey, then the airlines and the residents engage in negotiations. The ________ of air travel is 100 units.

• A) minimum allowable level
• B) resulting efficient level
• C) government-regulated level
• D) maximum allowable level

---

Definitions:

Clerical Work

Administrative tasks including filing, typing, record keeping, and handling correspondence, typically performed in an office setting.

Nazi Germany

The period of German history from 1933 to 1945 under the dictatorship of Adolf Hitler, characterized by the totalitarian regime of the National Socialist German Workers' Party.

Immigrant Groups

Communities or collections of individuals who have relocated from one country to another, often bringing diverse cultures, languages, and traditions to their new home.

Immigration Quotas

Government-imposed limits on the number of immigrants allowed to enter a country each year.