Use the Following to Answer Questions

question 159

Multiple Choice

Use the following to answer questions:
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 its marginal social benefit would exceed its marginal social cost.
• C) too much pollution, because its marginal social cost would exceed its marginal social benefit.
• D) too much pollution, because any pollution is too much from an economist's perspective.

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Definitions:

Social Class

A division of society based on socio-economic status, often categorized by factors such as income, occupation, and education.

Pluralist Theory

Holds that power is widely dispersed. As a result, no group enjoys disproportionate influence, and decisions are usually reached through negotiation and compromise.

Power Resource Theory

A theoretical framework suggesting that the power of social groups, especially in industrial relations and welfare state development, stems from their control over critical resources.

Public Policy

Governmental guidelines or principles directing public administration, which are intended to address societal issues and influence decision making.