-In the Above Figure, If a Firm Is Cleaning Up

question 40

Multiple Choice

-In the above figure, if a firm is cleaning up units of pollution, it is an

• A) efficient solution because marginal social benefits are greater than marginal social costs.
• B) efficient solution because marginal social benefits are equal to marginal social costs.
• C) inefficient solution because marginal social benefits are greater than marginal social costs.
• D) inefficient solution because marginal social costs are greater than marginal social benefits.

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Definitions:

Sensory Memory

The shortest-term element of memory, it is the ability to retain impressions of sensory information after the original stimuli have ended.

Automatic Processing

The subconscious processing of information, allowing tasks to be performed without conscious effort or attention.

Ebbinghaus

A psychologist who pioneered the experimental study of memory and is best known for his discovery of the forgetting curve and the spacing effect.

Forgetting Curve

A graphical representation of the decline in memory retention over time, showing how information is lost when there is no attempt to retain it.