What Is the Immediate Result of Applying the Clean Air

question 16

Multiple Choice

What is the immediate result of applying the Clean Air Act to a previously nonregulated industry?

• A) Price decreases and production is reduced.
• B) Price increases and production is reduced.
• C) Price decreases and production is enlarged.
• D) Price increases and production is enlarged.

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Definitions:

Positive Economic Statement

A factual claim about the world that can be tested and validated, referring to what is, rather than what ought to be.

Normative

Normative relates to an ideal standard or model, often reflecting opinions about what is desirable or how things should be, especially in ethics and economics.

Gasoline

A petroleum-derived liquid mixture consisting mainly of hydrocarbons, used primarily as fuel in internal combustion engines.

Normative

Pertaining to prescriptive assessments or statements that express judgments about what ought to be, as opposed to descriptive statements which detail what is.