Why Do Economists Plot a Curve of Pollution Cleanup Costs

question 12

Multiple Choice

Why do economists plot a curve of pollution cleanup costs against a curve of estimated social costs of pollution? 

• A) to find the internal costs of pollution 
• B) to find the minimum level of pollution 
• C) to find the optimal level of pollution 
• D) to find the maximum level of pollution

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Definitions:

SUTA

SUTA, or State Unemployment Tax Act, is a taxation mechanism in the United States that mandates employers to pay a tax to fund unemployment benefits for workers who lose their jobs.

FICA-Social Security

The portion of the Federal Insurance Contributions Act tax that funds the Social Security program, providing benefits for retirees and disabled individuals.

FICA-Medicare

A federal tax in the United States deducted from employees' paychecks to fund the Medicare program, which provides health coverage to eligible elderly and disabled individuals.

Employee Federal Income Taxes

Taxes withheld from employees' salaries by employers to pay to the federal government.