Some pollution may be preferable to zero pollution because
A. attempting to decrease the level of pollution to zero may cause significant losses in society's welfare.
B. we really do not have that much pollution.
C. the nation's citizens are against government's involvement in solving the pollution problem.
D. no form of regulation that has been shown to be effective at solving the pollution problem.
Answer: A
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Suppose a chemical plant regularly dumps chemicals into a river that must be cleaned up before farmers located downstream can use the water on their crops
Dumping the chemicals into the river saves the chemical plant $750,000 in yearly disposal costs and cleaning the water costs farmers $825,000 each year. Explain what the benevolent social planner would like to see happen in this case.
In the labor market, as wages rise, households
A) decrease the quantity of labor supplied. B) increase the quantity of labor supplied. C) decrease the quantity of labor demanded. D) increase the quantity of labor demanded. E) increase the supply of labor.