The Concept of the "Best" Level of Pollution Suggests That

question 90

Multiple Choice

The concept of the "best" level of pollution suggests that:

• A)​increased concerns about pollution control shifted the marginal social cost curve to the left.
• B)​the opportunity cost of reducing pollution may sometimes exceed the benefit.
• C)​unregulated markets generally reduce pollution to efficient levels with marginal social cost equal to marginal social benefit.
• D)​none of the above

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Definitions:

Labour Efficiency Variance

It measures the effectiveness of labor usage by comparing the budgeted hours for a set level of production against the actual hours worked, indicating efficiency or inefficiency in labor use.

Static Budget

A budget that does not change or adjust over the period, established at the start of a period and based on a fixed level of activity.

Standard Costing

A cost accounting system that assigns a fixed cost to inventory with the variance analyzed to improve cost control and management decisions.

Labour Efficiency Variance

The difference between the actual hours worked and the standard hours expected to be worked, multiplied by the standard labor rate.