Question

(last word) the government should choose pollution abatement for all sources of pollution where the marginal benefit exceeds the marginal cost of that action. true false question 48 2 pts if a good that generates negative externalities were priced to take these negative externalities into account, then its price would increase and its quantity would decrease. quantity would increase, but its price would remain constant. price would decrease and its quantity would increase. price would increase, but its quantity would remain constant.

Explanation:

1. For the first - statement: In economic decision - making, when the marginal benefit of an action (like pollution abatement) exceeds the marginal cost, it is efficient to undertake that action. So, the government should choose pollution abatement for sources where marginal benefit > marginal cost.
2. For the second - statement: When negative externalities are internalized (priced in), the cost of production or consumption of the good increases. According to the law of demand, as price increases, quantity demanded decreases.

Answer:

1. true
2. price would increase and its quantity would decrease.