Government intervention to reduce the level of pollution is prompted by the existence of

Question

Quizplus · Accepted Answer

Government intervention to reduce the level of pollution is prompted by the negative externalities associated with the production and consumption of goods and services. Negative externalities refer to the costs incurred by individuals or society as a whole that are not reflected in the market price of the goods or services. For example, pollution generated by factories and transportation creates health problems and environmental damage that are not paid for by the producers or consumers, but by society as a whole. Government intervention in the form of regulations or taxes can help to internalize these costs and encourage the adoption of cleaner technologies and practices. The other choices are not directly related to pollution and its externalities.

Government Intervention to Reduce the Level of Pollution Is Prompted