Which of the Following Statements Is TRUE

question 123

Multiple Choice

Which of the following statements is TRUE?

• A)Mandating that every firm emit no more than X amount of pollutants is the most efficient method of reducing
• Pollution.
• B)A system of tradeable allowances increases pollution because firms can pay for the right to pollute.
• C)To maximize social surplus, the burden of reducing pollution should be allowed to vary by industry.(True Answer
• )Correct
• D)If the EPA cares about the sum of consumer and producer surplus, they should ignore the impact of pollution reduction
• On the profitability of firms.

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Definitions:

Labor Demand

The total number of hours that employers want to hire labor at a given wage rate, in a given time period.

Crowding Model

The crowding model is a concept in labor economics that suggests an oversupply of workers in certain sectors can lead to reduced wages and employment opportunities in those sectors.

Domestic Output

The total value of all goods and services produced within a country's borders in a specified time period.

Occupations

The various kinds of jobs or professions that individuals engage in to earn a living.