The Optimal Level of Pollution Abatement Is Where

question 335

Multiple Choice

The optimal level of pollution abatement is where

• A) the marginal benefit of abatement is greater than its marginal cost.
• B) the marginal benefit of abatement is less than its marginal cost.
• C) the marginal benefit of abatement is equal to its marginal cost.
• D) none of the above

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Definitions:

Market System

In this economic framework, the determination of investment, manufacturing, and allocation follows the principles of supply and demand, allowing prices for goods and services to be set freely within an open pricing system.

Allocates Resources

the process of distributing available resources among various uses to achieve optimal outcomes or objectives.

Economic Freedom

The degree to which individuals and businesses can make economic decisions without government intervention.

Central Planning

A system where the government or a centralized authority makes all decisions about the production and distribution of goods and services.