Which of the Following Statements Is Correct

question 112

Multiple Choice

Which of the following statements is correct?

• A)​The ideal solution to a pollution problem is to reduce pollution until it is technologically impossible to reduce it any further.
• B)​The ideal and fair solution to a pollution problem is to impose identical compliance standards on all polluting firms.
• C)​Charging firms for transferable emissions permits is a more efficient way of dealing with pollution than are compliance standards.
• D)​A per-unit pollution tax is a more efficient way of dealing with pollution than is a system of transferable emissions permits.

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Definitions:

Bowed Outward

A description of a production possibility frontier that displays increasing opportunity costs as more of one good is produced.

Specialized Resources

Inputs in the production process that have specific uses and are not easily adaptable to other types of production.

Comparative Advantage

The capacity of a person, business, or nation to create a product or offer a service with a smaller opportunity cost compared to its rivals.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.