From the Perspective of Economic Analysis,society Should

question 39

Multiple Choice

From the perspective of economic analysis,society should

• A) try to reduce pollution to a level as close to zero as is humanly possible.
• B) realize that it is unrealistic to expect that efforts to reduce pollution will be cost effective from society's standpoint.
• C) strive to maximize the difference between the costs of pollution and the costs of pollution control.
• D) reduce pollution as long as the reduction in social costs equals or exceeds the additional cost associated with the control program.
• E) pursue reduced pollution levels as long as the social cost of achieving these levels exceeds the social cost of polluting.

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Definitions:

Ideal Cost-Of-Living Index

A theoretical measure that tracks the changes in the amount required to maintain a constant standard of living over a period.

Ideal Cost-Of-Living Index

A theoretical measure representing the change in the amount of money needed to maintain a certain standard of living.

Utility

A measure of satisfaction or happiness that a consumer receives from consuming goods and services.

Current Prices

Prices at which goods and services are sold in the market at the present time, not adjusted for inflation or other factors that affect purchasing power.