Pollution Damages the Environment We Live In

question 251

Multiple Choice

Pollution damages the environment we live in. When would an economist advise that we reduce air pollution?

• A) when air pollution is in excess of the levels experienced in the 1950s, when air was much cleaner near big cities
• B) when the total benefit from air pollution reduction just equals the total cost of pollution reduction
• C) when air pollution levels are above near-zero levels
• D) when the marginal benefit from air pollution reduction outweighs the marginal cost of achieving the reduction

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Definitions:

Equity Market

A financial market where shares of companies are issued and traded, also known as the stock market.

World Equity Market

A global marketplace where shares of companies from different countries are bought and sold.

Correlations

A statistical measure that describes the extent to which two variables change together, indicating the strength and direction of their relationship.

Stock-Index Portfolios

Investment portfolios that aim to replicate the performance of a specific stock index, allowing investors to gain broad market exposure.