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:

Abolition of Slavery

The legal or formal ending of the practice of slavery, most notably in the United States with the Emancipation Proclamation in 1863 and the Thirteenth Amendment in 1865.

North

Generally refers to the geographic area located above the Equator or, in historical contexts like the American Civil War, states in the USA that opposed slavery.

George Washington

The first President of the United States (1789-1797), a Founding Father, and commander-in-chief of the Continental Army during the American Revolutionary War.