Use the Following to Answer Questions

question 16

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 20 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:

Cognitive Therapy

A type of psychotherapy focused on modifying dysfunctional emotions, behaviors, and thoughts through systematic procedures.

Contingency Contract

A contract format commonly used in behavioral economics and psychology, specifying the delivery of rewards or consequences contingent on the performance of the desired behavior.

Behavioral Change

Refers to the process of transforming or modifying human behaviors, often aimed at adopting more desirable or healthful habits, through various psychological and intervention strategies.

Reinforcements

In behaviorism, any event that strengthens or increases the likelihood of a behavior being repeated, which can be positive (adding a desirable stimulus) or negative (removing an aversive stimulus).