Conceptually, the Efficient Level of Carbon Emissions Is the Level

question 45

Multiple Choice

Conceptually, the efficient level of carbon emissions is the level for which

• A)the marginal benefit of reducing carbon emissions is maximized.
• B)the marginal cost of reducing carbon emissions is minimized.
• C)the marginal benefit of reducing carbon emissions is equal to the marginal cost of reducing carbon emissions.
• D)the marginal benefit of reducing carbon emissions is minimized and the marginal cost of reducing carbon emissions is maximized.

---

Definitions:

Marginal Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity, emphasizing decisions at the margin.

Scarce

A term describing the limited availability of resources relative to the wants and needs for them, leading to the necessity of making economic choices.

Additional Benefit

An additional benefit refers to extra advantages or perks that come from using a product or engaging in an activity, beyond the primary gains.

Additional Cost

The extra cost that is incurred when an economic agent decides to increase the level of an activity or purchase.