Resource price differentials that trigger the reallocation of ...

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Resource price differentials that trigger the reallocation of resources so as to equalize payments for similar resources are known as
 a. permanent differentials
  b. trigger price differentials
  c. reallocation differentials
  d. equal differentials
  e. temporary differentials

Question 2

The optimal level of air quality will increase if
 a. the cost of polluting increases
  b. pollution is found to be self-absorbing
  c. a new process allows pollution to be removed more cheaply
  d. the marginal social cost of air quality increases
  e. the marginal social benefit of air quality decreases

[DHRUVSHAH]

Answer to Question 1

E

Answer to Question 2

C