Use the Following to Answer Questions

question 175

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 the government imposed an environmental standard that did NOT allow the quantity of pollution to exceed 30 tonnes,there would be:

• A) a socially optimal quantity of pollution.
• B) too little pollution because its marginal social benefit would exceed its marginal social cost.
• C) too much pollution because its marginal social cost would exceed its marginal social benefit.
• D) too much pollution because any pollution is too much from an economist's perspective.

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Definitions:

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A year marked by widespread revolutions across Europe, driven by demands for political and social reform.

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A principal or fundamental belief guiding the behavior, practices, and decision-making of an individual or organization.

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A period dating from 1801 to 1850, often associated with significant socio-political changes and early industrialization.