Author Question: If pollution is reduced below the socially efficient level: a. the marginal cost of pollution ... (Read 61 times)

jjjetplane · **on:** Jun 30, 2018

If pollution is reduced below the socially efficient level:
a. the marginal cost of pollution abatement exceeds the marginal benefit of pollution abatement.
b. the marginal cost of pollution abatement is less than the marginal benefit of pollution abatement.
c. the marginal cost of pollution abatement equals the marginal benefit of pollution abatement.
d. nothing can be said about the relationship between the marginal cost and marginal benefit of pollution abatement.

Question 2

According to empirical observations, the cost of restricting international trade in the U.S. is much greater than the benefits generated from restriction. In the light of the above observation, which of the following statements is true?
a. The benefits of protecting domestic jobs typically outweigh the costs.
b. Consumers end up paying much more for the goods they buy in order to subsidize the relatively inefficient domestic producer.
c. U.S. GDP would be over 14 billion higher with import restrictions than without restrictions.
d. Protection of the U.S. textile and sugar industries means that all consumers pay a lower price for clothing and sugar.
e. Protection of the domestic industries enable the producers to charge lower prices for their products.