Future Business Leader Achievments (FBLA) Economics Practice Exam

Pollution control efforts should be expanded:

1. Until the total cost equals the total benefit of the activity.

2. As long as the benefits exceed the cost of removing pollutants.

3. Until pollution is eliminated.

4. Until total benefits reach their maximum.

The correct answer is: As long as the benefits exceed the cost of removing pollutants.

The chosen answer is accurate because it emphasizes the principle of cost-benefit analysis in the context of pollution control. Expanding pollution control efforts should continue as long as the benefits provided by reducing pollution exceed the costs involved in implementing those measures. This approach ensures that resources are allocated efficiently and effectively, maximizing societal welfare. When assessing pollution control, it's crucial to consider both the economic and environmental impacts. If the benefits of cleaner air, improved health outcomes, and enhanced biodiversity outweigh the financial costs related to operational or compliance expenditures, then it makes sense to pursue additional measures. This allows for an optimal level of pollution control where the societal gains justify the investments made. Other options may reflect good intentions but lack the economic rationality that underpins effective policy-making. For example, aiming to eliminate pollution entirely may be unrealistic and excessively costly compared to the benefits, while striving for maximum total benefits does not necessarily account for diminishing returns in pollution control efforts. Thus, the focus should be on ensuring that the incremental benefits from pollution reduction justify the associated costs, which is precisely captured in the understanding of option B.