Question

While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms’ owners, workers, and customers. Thisstatement illustrates the principle that a. trade can make everyone better off. b. rational people think at the margin. c. people face tradeoffs. d. people respond to incentives.

Answer 1

Answer: OPTION C

Explanation: A trade-off (or trade-off) is a decision of a situation involving a decrease or loss of one quality, volume or assets of a set or layout in return for profits in other respects.

Simply put, a trade off is where one thing is increasing and another has to be diminishing.Thus, we can conclude that the given case depicts trade off as if the society wants to enjoy a clearer and safe environment they have to forego some of their incomes.