The Case in Point on Preventing Oil Spills Stated That

question 19

Multiple Choice

The Case in Point on Preventing Oil Spills stated that an economist who studied the costs and benefits of preventing oil spills in coastal waters and rivers concluded that:

• A) the marginal cost of preventing oil spills was greater than the marginal benefit and the U.S.Coast Guard could not justify its excessive prevention efforts.
• B) The marginal cost of preventing oil spills was less than the marginal benefit and that the U.S.Cost Guard could justify even greater efforts at preventing them.
• C) that oil spills are so terrible and have such a pervasively destructive impact on the coastal waters and rivers that they should be prevented entirely-no oil spills should be tolerated.
• D) both B and C were conclusions reached by the economist.

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Definitions:

Two Pages

Typically refers to a document or written material consisting of two sides of a sheet of paper.

Negative External Effects

Negative impacts of an economic activity on third parties who are not directly involved in the transaction.

Efficient Outcome

A situation where resources are allocated in the most effective manner, maximizing benefits and minimizing waste.

Lawsuit

A legal action brought in a court by a plaintiff against a defendant, typically seeking compensation for some form of harm or enforcement of a right.