Regarding the causes of pollution, economists believe that:
A)the pricing system has failed.
B)the public interest requires that pollution to be reduced below its market level.
C)a firm pollutes the air and water because they are free.
D)All of the above are correct.

Question

Regarding the causes of pollution, economists believe that:
A)the pricing system has failed. 
B)the public interest requires that pollution to be reduced below its market level. 
C)a firm pollutes the air and water because they are free.
D)All of the above are correct.

Quizplus · Accepted Answer

Economists argue that pollution occurs because the pricing system does not account for environmental costs (A), society benefits from reducing pollution below market levels (B), and firms pollute because they do not bear the cost of using air and water (C).

Regarding the Causes of Pollution, Economists Believe That