Economists view pollution as an economic problem that arises because _____
A)private enterprises always minimize the amount of pollution produced.
B)profitable firms rarely pollute.
C)the level of pollution declines as the economy grows.
D)firms that pollute do not pay the full social cost of producing their output.
E)pollution costs are always borne by the government.

Question

Quizplus · Accepted Answer

Economists view pollution as an economic problem that arises because firms that pollute do not pay the full social cost of producing their output, meaning they do not bear the cost of the negative impact their actions have on the environment and society. This creates a market failure where the price of goods does not reflect the true cost of production.

Economists View Pollution as an Economic Problem That Arises Because