Question

Economists argue that the level of pollution should be A. reduced completely to zero because by​ definition, it has a negative external effect. B. ignored because it has always been present since the beginning of history. C. best determined by elected officials who can speak on behalf of the public. D. reduced to the point where the marginal benefit of pollution reduction is equal to the marginal cost of pollution reduction to society.

Answer 1

Answer: D. reduced to the point where the marginal benefit of pollution reduction is equal to the marginal cost of pollution reduction to society.

Explanation:

For economists, pollution is a cost of externality and occurs only when one or more individuals suffer a loss of well-being.

Even so, economists do not typically recommend eliminating externality because they argue that the optimal externality is not zero.

It is wrong to think that polluters are only companies: governments and individuals also pollute.