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.

---

Definitions:

Tax-Exempt

Financial earnings that are not subject to taxation by the government, often applied to certain bonds and municipal securities.

Preferred Stock

Nonvoting shares in a corporation, paying a fixed or variable stream of dividends.

Cumulative Dividends

Dividends that are owed to preferred shareholders of a company and must be paid out before dividends can be distributed to common shareholders.

Voting Power

Voting power refers to the number of votes a shareholder has in a company's decisions, typically based on the number of shares held.