According to Economic Analysis, the Optimal Quantity of Pollution Exists

question 179

Multiple Choice

According to economic analysis, the optimal quantity of pollution exists at the point at which the

• A) total benefit of pollution control is equal to the total cost.
• B) marginal benefit of pollution control is equal to the marginal cost.
• C) level of pollution is at zero.
• D) level of pollution is acceptable to the society.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturation date, accounting for interest payments and the difference between purchase price and par value.

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) over its lifetime, and the principal is repaid at maturity.

Interest-Rate Risk

The potential for investment losses due to fluctuations in interest rates.

Yield To Maturity

The total return anticipated on a bond if held until its maturity date, taking into account its current market price, par value, coupon interest rate, and time to maturity.