Use the Following to Answer Questions

question 99

Multiple Choice

Use the following to answer questions :
Figure: Pollution and Efficiency
-(Figure: Pollution and Efficiency) Use Figure: Pollution and Efficiency.In this market,in which sulphur emissions are a result of production,if _____ units of emissions are produced,then _____.

• A) 30;it would be efficient
• B) 30;MSB > MSC
• C) 45;total cost would equal total benefits
• D) 45;MSC = 0

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Definitions:

Labor Productivity

An indicator of economic efficiency that evaluates the quantity of goods and services produced (output) relative to the total hours spent in producing those goods and services.

Complementary Resources

Resources used together in production that increase each other's effectiveness.

Fixed Proportions

A production condition where inputs must be combined in strict, unchanging ratios to produce output.

Substitution Effect

The change in the quantity demanded of a good resulting from a change in its price, making it more or less expensive relative to other goods.