If Water Quality Law Prevents the Achievement of the Efficiency

question 5

Multiple Choice

If water quality law prevents the achievement of the efficiency criterion

• A) that law must be repealed
• B) a "second-best" economic solution is to identify cost-effective policy initiatives
• C) cost-effectiveness is also prevented
• D) polluting sources should abate up to the point where total social benefits are maximized

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Definitions:

Political Contributions

Financial donations made to support political parties or candidates.

Economic Inefficiency

A situation where resources are not utilized in the most productive manner, leading to waste or loss of potential value.

Government Favors

Special advantages, privileges, or concessions given by the government to certain businesses, industries, or sectors.

Better Products

Goods that are of higher quality or more desirable compared to others available in the market.