Assume That Emissions from Electric Utilities Contribute to Pollution in the Form

question 13

Multiple Choice

Assume that emissions from electric utilities contribute to pollution in the form of acid rain.Which of the following describes how this affects the market for electricity?

• A)The equilibrium in the market is not efficient; the marginal benefit from electricity is greater than the marginal social cost.
• B)A deadweight loss occurs; at equilibrium the additional social cost of production is greater than the additional benefit to consumers.
• C)The equilibrium in the market is not efficient; because of the cost of the acid rain, economic efficiency would be greater if more electricity were produced.
• D)The equilibrium in the market is not efficient; consumer surplus is equal to producer surplus.

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Definitions:

Resistance

The opposition or counteracting force in various contexts, such as psychological resistance to change or physical resistance in electrical conductance.

Freud

The founder of psychoanalysis, a theory of the mind, which focuses on unconscious psychological processes.

Antidepressant Drugs

Medications prescribed to relieve symptoms of depression by correcting imbalances of neurotransmitters in the brain.

Physical Side Effects

Unintended changes in the body that occur as a result of medication, treatment, or other interventions.