Multiple Choice
As preferences for a clean environment increases,the socially optimal quantity of pollution will:
A) remain the same because it is not determined by preferences.
B) increase because of increasing opportunity costs.
C) decrease because the demand shift will generate a new social optimum.
D) either increase or decrease depending on whether that demand is reflected in new market prices.
Correct Answer:

Verified
Correct Answer:
Verified
Q39: The presence of an external benefit that
Q40: Suppose that in most car collisions between
Q41: A village has five residents,each of
Q42: The following payoff matrix shows the
Q43: If the external cost of an activity
Q45: Suppose there are ten people playing cards
Q46: The following data show the relationship
Q47: Suppose that in most car collisions between
Q48: Taylor lives in a residential neighborhood
Q49: Early settlers in the town of Dry