Based on economic theory, which statement is incorrect regarding the causes of pollution?
A)A pricing system failure
B)The public interest requires that pollution to be reduced below its market level.
C)A firm pollutes the air and water because it is not charged for their use.
D)The levels of pollution in former centrally planned economies are better maintained than in market economies.

Question

Quizplus · Accepted Answer

The statement regarding the levels of pollution in former centrally planned economies being better maintained than in market economies is incorrect. In reality, centrally planned economies have been known to have higher levels of pollution due to a lack of market-based incentives to reduce pollution and a disregard for environmental externalities.

Based on Economic Theory, Which Statement Is Incorrect Regarding the Causes