If Firms Were Forced to Take into Account the Full

question 276

Multiple Choice

If firms were forced to take into account the full social costs of production, then

• A) output would decrease but pollution levels would probably remain at the same levels.
• B) output would be unaffected but pollution levels would come down.
• C) output and pollution levels would decrease.
• D) output could be increased and pollution levels would decrease.

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Definitions:

Catalyst

A substance that increases the rate of a chemical reaction without being consumed or altered permanently in the process.

Semipermeable Membrane

A type of membrane that allows certain molecules or ions to pass through by diffusion but not others.

Osmotic Pressure

Amount of turgor that prevents osmosis into cytoplasm or other hypertonic fluid.

Receptor-Mediated Endocytosis

A cellular process where specific molecules are ingested into the cell after they bind to receptors on the cell surface.