The Optimal Level of Air Quality Will Increase If:​

question 32

Multiple Choice

The optimal level of air quality will increase if:​

• A)the cost of polluting increases.
• B)price of pollution reducing equipment increases.
• C)a new process allows pollution to be removed more cheaply.
• D)the marginal social cost of air quality increases.
• E)the marginal social benefit of air quality decreases.

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Definitions:

Interest Rate

The cost incurred, calculated as a fraction of the principal, for utilizing assets, charged by the lender to the borrower.

Banks

Financial institutions licensed to receive deposits and make loans, and offer various other financial services, such as wealth management and currency exchange.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, taxes, and costs incurred in producing those revenues.

Financial Markets

Marketplaces where individuals and entities can trade financial securities, commodities, and other fungible assets at prices determined by supply and demand.