Figure 3-2 -In Figure 3-2, a Point Such as a

question 111

Multiple Choice

Figure 3-2
-In Figure 3-2, a point such as A

• A)is preferable over B.
• B)is an efficient use of resources.
• C)represents a misallocation of resources.
• D)is not obtainable.

---

Definitions:

Tradable Pollution Permits

A market-based approach to controlling pollution by providing economic incentives for achieving reductions in the emissions of pollutants.

Pollution

The introduction of contaminants into the natural environment that cause adverse change, often as a byproduct of human activities.

Well-Maintained Yard

A property space that is kept in good condition through regular care, such as mowing, watering, and landscaping.

Positive Externality

A beneficial effect experienced by a third party due to an economic transaction that they were not directly involved in.