The Optimum Level of Economic Activity and Associated Pollution from Society's

question 3

Multiple Choice

The optimum level of economic activity and associated pollution from society's point of view occurs where:

• A)Marginal private benefit = Marginal private cost.
• B)Marginal social benefit < Marginal social cost.
• C)Marginal social benefit = Marginal social cost.
• D)Marginal social benefit > Marginal social cost.

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Definitions:

Social Contract

A theoretical framework that posits individuals have consented, either explicitly or tacitly, to surrender some of their freedoms and submit to the authority of the ruler or magistrate (or to the decision of a majority), in exchange for protection of their remaining rights.

Ethical Theories

Philosophical ideas or principles that guide decisions about what is morally right and wrong.

Character

The mental and moral qualities distinctive to an individual, which define their nature and actions in various situations.

Conduct

The manner in which a person behaves, especially on a particular occasion or in a specific context.