If the Marginal Benefit of Reducing Emissions of Some Air

question 241

Multiple Choice

If the marginal benefit of reducing emissions of some air pollutant is greater than the marginal cost,

• A)further reductions will make society better off.
• B)the marginal benefit will rise and the marginal cost will fall as further reductions are made.
• C)economic efficiency will be achieved when emissions are reduced to zero.
• D)private businesses, rather the consumers, should be made to pay for the cost of further reductions.

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Definitions:

Population Parameter

A value that represents a characteristic of an entire population.

Interval Estimate

An estimate of a parameter that provides a range of possible values within which the parameter is expected to lie, specified by a confidence level.

Population Parameter

A numerical characteristic that describes an aspect of a population, such as its mean or variance.

Actual Value

The real value observed or measured, as opposed to an estimated or theoretical value.