Question

What economic goals might come into conflicts if a factory polluted a local water supply

Answer 1

Conflicts between economic production and environmental quality arise when factories pollute, affecting goals like growth and ecological sustainability. Governments typically regulate pollution, but market-oriented solutions may offer cost-effective alternatives. Balancing both economic activity and environmental health is crucial.

Step-by-step explanation:

When a factory pollutes a local water supply, several economic goals may come into conflict. One primary goal is to maintain economic production and growth, which the factory may be contributing to. Another is to uphold environmental quality, which is compromised by the pollution. These conflicts are not unique to any single type of economy; they can occur in high-income or low-income countries and in both market-oriented and command-oriented economic systems.

Companies might not consider social costs such as pollution in their planning if they are not directly paying for these negative impacts. As a result, the burden often falls on the government to establish environmental protections, which have traditionally involved strict regulatory caps on emissions. Nowadays, economists advocate for more flexible, market-oriented approaches that could potentially lower the cost of reducing pollution without compromising production efficiency.

The conflict between ensuring efficient economic activity and preventing environmental degradation is a classic example of the tradeoffs that accompany economic development. Striking a balance is essential for sustainable growth and the well-being of citizens and the ecosystem.

Answer 2

I believe the answer is: Economic growth and equity

Equity refers to achieving general welfare for other people in society. Dumping the waste into public water would most likely cut down the cost of waste management and improve economic growth. But it would most resulted negatively to the general welfare of the public.