Questions: Multiple Choice Question The marginal benefit curve for pollution reduction slopes because of the law of . upward; increasing marginal utility downward; diminishing marginal utility downward; diminishing marginal revenues upward; increasing marginal returns

The answer is the second one: downward; diminishing marginal utility.

Explanation for each option:

1. Upward; increasing marginal utility: This option is incorrect because the marginal benefit curve for pollution reduction typically does not slope upward. Increasing marginal utility would imply that each additional unit of pollution reduction provides more benefit than the previous one, which is not generally the case.

2. Downward; diminishing marginal utility: This is the correct answer. The marginal benefit curve for pollution reduction slopes downward because of the law of diminishing marginal utility. As more pollution is reduced, the additional benefit gained from reducing an extra unit of pollution decreases. This reflects the common economic principle that the first units of pollution reduction provide the most significant benefits, and each subsequent unit provides less additional benefit.

3. Downward; diminishing marginal revenues: This option is incorrect in this context. While diminishing marginal revenues can apply to other economic scenarios, the question specifically pertains to the marginal benefit of pollution reduction, which is more accurately described by diminishing marginal utility.

4. Upward; increasing marginal returns: This option is incorrect because increasing marginal returns would suggest that each additional unit of pollution reduction yields more benefit than the previous one, which contradicts the typical behavior of the marginal benefit curve in this context.

In summary, the marginal benefit curve for pollution reduction slopes downward due to the law of diminishing marginal utility.