Use the Following to Answer Question

question 74

Multiple Choice

Use the following to answer question:
Figure 17.11
-(Figure 17.11) The government wants to set the socially optimal level of nitrogen runoff, and government regulators believe that the actual marginal benefit of pollution (MBP) is given by the estimated MBP curve. The deadweight loss associated with a quota is _____, while the deadweight loss from a Pigouvian tax is _____.

• A) $2; $18
• B) $12; $18
• C) $6; $4
• D) $8; $2

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Definitions:

Low Avoidance

A characteristic of individuals who do not actively evade or try to prevent uncomfortable or negative situations.

Attachment Style

Patterns of behavior in relationships that are formed in early childhood and affect intimate relationships throughout life.

Two-Factor Theory

A theory in psychology that posits emotions are based on physiological arousal and cognitive labels.

Triangular Model

A theory in psychology, often referring to the Triangular Theory of Love, which describes love in terms of three components: intimacy, passion, and commitment.