Why Should Historical Experience Be Used with Caution in a Standard

question 121

Multiple Choice

Why should historical experience be used with caution in a standard setting?

• A) Historical experience can perpetuate inefficiencies.
• B) Historical experience provides very rigorous guidelines.
• C) Standards based on historical experience are better than standards based on engineering studies.
• D) Operating personnel may not be able to achieve operating standards based on historical experience.

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Definitions:

Pollution

The introduction of harmful substances or products into the environment, leading to adverse effects on living organisms and ecosystems.

Emissions Tax

An emissions tax is designed to reduce environmental harm by charging a fee for the emission of pollutants, incentivizing businesses and individuals to decrease their environmental impact.

Socially Optimal

A condition or outcome that maximizes the well-being of society as a whole, often considered in economic policies or strategies.

Marginal Social Cost

The total cost to society of producing one additional unit of a good or service, including both private costs and externalities.