In most instances,the environmental consequences of economic activity are not taken into account through the market.As a result,
A) governmental environmental regulation plays a negative role when it tries to ensure that scale consequences are not negative.
B) governmental environmental regulation plays a negative role when it tries to ensure that structural consequences are positive.
C) forcing producers to pay the social costs of environmental damage is unfair.
D) governmental environmental regulation plays an important role in ensuring that economic consequences are more positive than negative.
E) greater environmental damage will be accepted by society if environmentalists are more active in defending the common societal interest.

Question

Quizplus · Accepted Answer

The statement suggests that economic activity often does not consider its environmental consequences, implying that the market fails to internalize negative externalities. Thus, governmental environmental regulation, which can help ensure a more positive outcome, is necessary. Option D states this fact explicitly, making it the best choice. The other options are incorrect as they do not accurately reflect the statement's meaning.

In Most Instances,the Environmental Consequences of Economic Activity Are Not