Use the Following to Answer Questions

question 139

Multiple Choice

Use the following to answer questions :
Figure: Efficiency and Pollution
-(Figure: Efficiency and Pollution) Use Figure: Efficiency and Pollution.Assume that firms are the only beneficiaries of pollution and that costs are borne solely by others in the society.If this market produced _____ tonnes of pollution,then _____.

• A) 30;it would be efficient
• B) 45;marginal social cost would be less than marginal social benefit
• C) 20;marginal social benefit would be less than marginal social cost
• D) 20;the marginal social benefit would be $7

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Definitions:

Prestigious

Associated with high status, esteem, or importance.

Safer

Relates to conditions, practices, or items that minimize or reduce risk and enhance security.

Market Wage Rate

The average or prevailing wage paid to workers in a specific market or industry.

Out-of-town Travel

Journeys made to destinations outside one's usual residence or place of work, often implying leisure or business travel that takes place away from the local area.