Final answer:
Extreme levels of pollution can hurt the economic development of a high-income country by increasing healthcare costs and decreasing worker productivity, which necessitates the implementation of effective policies to balance production and environmental quality. The correct option is c. Yes, as pollution can negatively affect worker productivity.
Step-by-step explanation:
Can extreme levels of pollution hurt the economic development of a high-income country? Indeed, extreme levels of pollution can have significant impacts on the economic development of high-income countries. This impact manifests itself in various ways, not the least through increased healthcare costs and the effect on worker productivity.
High pollution leads to greater public health challenges, escalating healthcare costs significantly. The populace affected by pollution-related diseases would necessitate more healthcare services, directly affecting the economy by funneling resources away from other potential investments and increasing the burden on the healthcare system.
Furthermore, pollution can directly impact worker productivity. Employees suffering from pollution-related health issues are less likely to perform optimally, reducing the overall productivity of the workforce. This reduction in productivity can stifle economic growth and development.
Policies that focus on reducing pollution, whether they are traditional government-imposed limits or more flexible, market-oriented approaches, are crucial for maintaining a balance between economic production and environmental quality. Both types of strategies aim to internalize the social costs of pollution, so firms are incentivized to reduce their emissions.