Economists Argue That the Level of Pollution Should Be

question 201

Multiple Choice

Economists argue that the level of pollution should be

• A)reduced completely to zero because by definition, it has a negative external effect.
• B)ignored because it has always been present since the beginning of history.
• C)reduced to the point where the marginal benefit of pollution reduction is equal to the marginal cost of pollution reduction to society.
• D)best determined by elected officials who can speak on behalf of the public.

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Definitions:

Borrowed Funds

Money that an entity borrows from another to finance its operations, investments, or other expenditures that must be repaid with interest.

Report Rates

The interest rates reported by financial institutions, often related to loans or deposits, to regulatory bodies or in their financial statements.

LIBOR

The London Interbank Offered Rate is a standard interest rate used by leading international banks for loans to each other.

Federal Funds Rate

The Federal Funds Rate is the interest rate at which depository institutions lend reserves maintained at the Federal Reserve to other depository institutions overnight.