Which of the Following Criteria Should Be Used to Evaluate

question 254

Multiple Choice

Which of the following criteria should be used to evaluate if government intervention in a market for the purpose of environmental protection is justified?

• A)Does the intervention program reduce pollution to zero using the least costly method?
• B)Is the intervention program economically efficient?
• C)Does the intervention program make the amount of economic surplus as large as possible?
• D)Is the damage to the environment from government intervention as small as possible?

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Definitions:

Association

A group of people linked by a common purpose or interest, often formed to carry out a specific activity or to advocate for a cause.

Causation

The relationship between cause and effect, where one event (the cause) directly leads to another event (the effect).

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable on another by holding all other relevant factors constant.

Premature Harvesting

The process of collecting or using resources before they have reached an optimal level of growth or value, which can lead to inefficiency or resource depletion.