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Please Answer True or False and Explain 1980a1980 \mathrm { a }

Question 166

Essay

Please answer true or false and explain.
(A) A new technology is fliccuered that results in all new cars prachcing 50 percent less pollution. Peaple are better aff because the air they breathe is cleaner, and hence GDP wrill increase to reflect the fact that people are better off.
(B) A new technology is hiscavered that results in all new cars protucing 50 percent less pollution. As a result there is areduction in the number of visits peaple make to the doctar to complain of breathing difficulties. Peaple are better aff because they are healthier, and hence GDp wril increase to reflect the fact that people are better aff.
(C) A new technolay is liscavered that results in all new cars producing 5D percent less pallution. The ederal gaverment affers all peaple awring cars built befare 1980a1980 \mathrm { a } 1,000 rebate on the purchase of anew car in an attempt to remove polluting cars from the raad. One thausand peaple accept the affer and buy new cars warth 25 millian. GDP increases by the value of the cars sold, which is $25\$ 25 millian, and the tatal amount of the govermment exgenditure on the rebate propram, which is $1\$ 1 million.

Correct Answer:

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(A) False. While pepple waula be better ...

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