Figure: Efficiency and Pollution

question 136

Multiple Choice

Figure: Efficiency and Pollution
(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution.If the government imposed an environmental standard that did not allow the quantity of pollution to exceed 20 tons, there would be:

• A)a socially optimal quantity of pollution.
• B)too little pollution, because the marginal social benefit of pollution would exceed the marginal social cost of pollution.
• C)too much pollution, because the marginal social cost of pollution would exceed the marginal social benefit of pollution.
• D)too much pollution, because any pollution is too much from an economist's perspective.

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Definitions:

Court Decision

A ruling or judgment made by a court of law in a legal case, determining the outcome of the dispute in question.

Remedy

The means by which a court enforces a right, imposes a penalty, or resolves a dispute.

Injury

Harm or damage inflicted on a person's body, property, rights, or reputation.

Diversity of Citizenship

A legal principle allowing federal courts in the United States to hear cases involving parties from different states or countries.