Which of the Following Statements About the Economically Efficient Level

question 154

Multiple Choice

Which of the following statements about the economically efficient level of air pollution is correct?

• A)The economically efficient level of pollution is zero.
• B)The economically efficient level of pollution occurs where all social costs equal all social benefits.
• C)The economically efficient level of pollution occurs where the marginal cost of pollution reduction equals the marginal social benefit of reduction.
• D)The economically efficient level of pollution occurs where total benefits of pollution reduction are maximized.

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Definitions:

Hindsight Bias

The tendency to perceive events as having been predictable after they have already occurred.

Exaggerate

To describe something in a way that makes it seem larger, better, worse, or more important than it actually is.

Foresight

The ability to anticipate future events, needs, or problems and prepare for them.

Outcome

The result or effect of an action, situation, or event.