Pollution of water and air resources:
A)can be solved by addressing the positive externalities
B)can be viewed as an example of a common resource problem
C)are viewed as a bastion of efficient market processes
D)can be solved by taxes on swine, called Pigovian taxes

Question

Quizplus · Accepted Answer

Pollution of both water and air can be viewed as common resource problems because they are shared resources that can be overused and degraded by individuals or firms unless they are regulated or controlled in some manner. Additionally, Pigovian taxes (D) can be a solution to this problem by discouraging polluters through financial penalties. However, it may not completely solve the problem and addressing positive externalities (A) and promoting efficient market processes (C) may not directly solve the issue of pollution in water and air resources.

Pollution of Water and Air Resources