If Electric Utilities Continually Reduce Their Emissions of Sulphur Dioxide

question 68

Multiple Choice

If electric utilities continually reduce their emissions of sulphur dioxide,

• A)the utilities will eventually be forced to go out of business.
• B)the marginal benefit of additional emissions will rise.
• C)the marginal cost of further emissions will rise.
• D)the total benefit of sulphur dioxide emissions will fall.

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Definitions:

Price of Leisure

The opportunity cost of leisure, represented by the wages foregone by choosing leisure time over work time.

Human Capital

The combined abilities, expertise, and non-physical assets of people that can generate economic benefits for the individuals, their employers, or the society.

Technological Progress

The improvement or development in technology which increases productivity and can lead to economic growth and improved living standards.

Backward-Bending

This term describes a situation where, beyond a certain point, higher wages actually lead to a decrease in labor supply because workers prefer leisure over additional work.