Answer the following statement(s) true (T) or false (F)
1. The spending needed to maintain the utility level of society to compensate for resources used to achieve a cleaner environment is referred to as explicit environmental costs.
2. Marginal social cost is equivalent to the sum of the market-level marginal abatement costs and the government’s marginal cost of enforcement.
3. Marginal social cost (MSC) of some abatement level, A1, can be determined as the area under the total social cost (TSC) function up to A1.
4. The area under the MSC from the origin up to some abatement level, A0, is the TSC of abating A0 units.
5. The marginal social cost (MSC) curve linked to environmental policy is captured by the supply of the public good, environmental quality.
1. False
2. True
3. False
4. True
5. True
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