As Preferences for a Clean Environment Increases,the Socially Optimal Quantity

question 44

Multiple Choice

As preferences for a clean environment increases,the socially optimal quantity of pollution will:

• A)remain the same because it is not determined by preferences.
• B)increase because of increasing opportunity costs.
• C)decrease because the demand shift will generate a new social optimum.
• D)either increase or decrease depending on whether that demand is reflected in new market prices.

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Definitions:

Bar Graph

A chart that represents data with rectangular bars with lengths proportional to the values they represent.

Smallest To Highest

Ordering or arranging items based on their size or value, beginning with the smallest and ending with the largest.

Label

To assign a name, category, or description to something for the purpose of identification.

Horizontal

Refers to alignment, direction, or orientation that is parallel to the ground or to the bottom and top margins of a page, often contrasted with vertical.