-Refer to the Above Figure

question 177

Multiple Choice

-Refer to the above figure. Suppose the marginal benefit and the marginal cost curves of pollution abatement are normally shaped. Suppose the equilibrium is for a factory in Los Angeles. What would happen if the same factory were in the middle of Nevada?

• A) The marginal cost curve (1) would shift to (2) and there would be no difference in the level of abatement.
• B) The marginal cost curve (2) would shift to the left and there would be less abatement in Nevada.
• C) The marginal benefit curve (4) would shift to the left and there would be less abatement in Nevada.
• D) The marginal benefit curve (2) would shift to the right and there would be more abatement in Nevada.

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Definitions:

Controlled Studies

Experiments or observations designed with control groups and experimental groups to eliminate the effects of variables other than the independent variable.

Classical Psychoanalysis

A technique in psychology developed by Freud, focusing on uncovering unconscious motivations and early childhood influences on behavior.

Relational Models

Theories or frameworks that describe the types and dynamics of relationships between individuals or entities.

Drive Reduction

A motivational theory suggesting that behavior is driven by the need to reduce internal tension caused by unmet biological needs, such as hunger or thirst.