Which of the Following Statements Concerning Pollution Is Correct

question 158

Multiple Choice

Which of the following statements concerning pollution is correct?

• A) Economic efficiency requires that pollution be completely eliminated.
• B) Economic efficiency dictates that the optimal amount of pollution arises at the point at which price equals private marginal cost.
• C) Pollution should be reduced to the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.
• D) Pollution should be reduced to the extent necessary to return production to the production possibilities frontier.

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Definitions:

Sugar

A sweet-tasting, soluble carbohydrate found in many plants, which is commonly used as a sweetener in food.

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

API Gravity Degrees

A measure used in the petroleum industry that expresses the density of petroleum liquids relative to water; higher API gravity indicates a lighter oil.

Standardized Residuals

The differences between observed and predicted values, scaled by an estimate of standard deviation.