As a General Rule, If Pollution Costs Are External, Firms

question 9

Multiple Choice

As a general rule, if pollution costs are external, firms will produce

• A) too little of a polluting good.
• B) too much of a polluting good.
• C) an optimal amount of a polluting good.
• D) cannot be determined without additional information.

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Definitions:

General Motors

A multinational corporation headquartered in the United States that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Pursuit of Happiness

A fundamental right mentioned in the Declaration of Independence to freely pursue joy and live life in a way that makes one happy, as long as one does not do anything illegal or violate the rights of others.

Humble Background

A term describing an individual's origins in modest circumstances, without privilege or significant resources.