If Coal Mining Produces a Negative Externality in the Form

question 110

Multiple Choice

If coal mining produces a negative externality in the form of polluted streams then,at the market equilibrium,the:

• A)price of coal is too high.
• B)quantity of coal produced is too small.
• C)quantity of coal produced is too high.
• D)supply curve lies to the left of the regulated supply curve.

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Definitions:

Environmental Protection Agency

A U.S. federal agency responsible for managing and enforcing national pollution control and environmental laws and regulations.

Chemical Compound

A substance composed of two or more elements chemically bonded together in a fixed proportion.

Human Health

The state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Clean Water Act

A principal United States federal law, established in 1972, aiming to regulate pollutant discharges into the waters of the United States and to ensure water quality.