Question

if the msb function for some measure of environmental quality were known, the change in tsb associated with a policy initiative could be measured by the area under the msb between the pre- and post-abatement levels. group of answer choices true false

Answer 1

The statement regarding the measurement of the change in Total Social Benefit (TSB) using the area under the Marginal Social Benefit (MSB) between pre- and post-abatement levels is true, as this method enables the calculation of the benefit gained from a policy aimed at reducing pollution.

Step-by-step explanation:

The statement provided by the student suggests that if the Marginal Social Benefit (MSB) function for some measure of environmental quality were known, the change in Total Social Benefit (TSB) associated with a policy initiative could be measured by the area under the MSB between the pre- and post-abatement levels.

This statement is true. The MSB curve represents the additional benefit society receives from reducing pollution by an additional unit.

By finding the area under the MSB curve between two quantities of abatement (pre- and post-policy initiative), one can calculate the change in TSB.