Which of the following statements is true?
A) Pollution is unrelated to the concept of scarcity.
B) Pollution is not considered a cost in market capitalist systems.
C) The existence of pollution implies that environmental resources have alternative uses.
D) Activities that create pollution do not generate a benefit from society's perspective.

Question

Quizplus · Accepted Answer

The existence of pollution implies that environmental resources have alternative uses, which is the concept of scarcity in economics. Pollution is a negative externality, which means that the activities that create it do not bear the full cost of their actions, but instead impose costs on society as a whole. Therefore, it is incorrect to say that pollution is not considered a cost in market capitalist systems or that it does not generate any benefit from society's perspective.

Which of the Following Statements Is True