If the Marginal Benefit of Reducing Emissions of Some Air

question 213

Multiple Choice

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

• A)further reductions will make society better off.
• B)further reduction will make society worse off.
• C)pollution taxes should be imposed on producers to pay for further reductions.
• D)economic efficiency will be increased if further reductions are made.

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Definitions:

Regression Model

A statistical technique that models and analyzes the relationships between a dependent variable and one or more independent variables.

Dependent Variable

The variable in an experiment or model that is expected to change in response to changes in the independent variable.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effects on the dependent variable.

SSE

Stands for Sum of Squared Errors, a measure used in statistics to indicate the difference between the observed and predicted values.