Question

tradeoff exists between a clean environment and a higher level of income in that a. studies show that individuals with higher levels of income pollute less than low-income individuals. b. efforts to reduce pollution typically are not completely successful. c. laws that reduce pollution raise costs of production and reduce incomes. d. employing individuals to clean up pollution causes increases in employment and income.

Answer 1

The correct answer is c. laws that reduce pollution raise costs of production and reduce incomes.

Step-by-step explanation:

Negative externalities: pollution

Pollution is an old problem in both developed and developing countries. It is an economic problem that consists in balancing benefits and costs. In a market without regulations with an externality, the pollution created depends on the amount of market equilibrium of the good produced.

Demand for a pollution-free environment

The demand for a pollution-free environment has increased for two reasons, one is because many societies have higher incomes, and the second is because there is greater awareness and knowledge about the causes of environmental problems and their consequences.