How Does a Tradeoff Exist Between a Clean Environment and a Higher

question 121

Multiple Choice

How does a tradeoff exist between a clean environment and a higher level of income?

• A)Studies show that individuals with higher levels of income actually pollute less than low-income individuals.
• B)To pay for pollution clean-up, the government must increase taxes which lowers income.
• C)Laws that reduce pollution raise costs of production and reduce incomes.
• D)By employing individuals to clean up pollution, employment and income both rise.

---

Definitions:

Contribution Margin

It represents the amount of revenue remaining after deducting variable costs, which can then be used to cover fixed costs and generate profit.

Unit Sold

The quantity of items or products that have been sold.

Direct Manufacturing Cost

The sum of all the cost components that are directly attributable to the production process, including direct materials and direct labor.

Units Produced

The total number of units of a product that have been manufactured during a specific period.