Because Producers Do Not Bear the External Cost of Pollution

question 223

Multiple Choice

Because producers do not bear the external cost of pollution

• A)the economically efficient level of production is achieved.
• B)private production is below the economically efficient level.
• C)private production exceeds the economically efficient level.
• D)the market price is too high.

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Definitions:

Repeated Mistakes

The act of making the same errors multiple times, often hindering progress or learning in any context.

Neoclassical Economics

Neoclassical economics is a school of thought that emphasizes rationality, market equilibrium, and the efficiency of markets in allocating resources.

Rational

Behaviors and decisions that maximize a person’s chances of achieving his or her goals.

Behavioral Economists

Economists focusing on how psychological, social, cognitive, and emotional factors influence the economic choices made by individuals and institutions.