Mobile source standards in the U.S. are solely benefit-based, which means they are set
A) to achieve allocative efficiency
B) to maximize total social benefits
C) at the point where MSB is maximized
D) at the abatement level where MSC is zero
E) none of the above

Question

Quizplus · Accepted Answer

Mobile source standards in the U.S. are solely benefit-based, which means they are set to maximize total social benefits. This implies that the standards are determined based on the net benefits that are associated with the use of mobile sources, taking into account all the positive and negative impacts on society. Therefore, the aim is to set standards that provide the greatest overall benefits to society, rather than achieving allocative efficiency or setting standards at the point where MSB is maximized or where MSC is zero.

Mobile Source Standards in the U