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 borne by the consumer.

Question

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 borne by the consumer.

Quizplus · Accepted Answer

Economists view pollution as an economic problem because firms that pollute do not pay the full social cost of producing their output. This creates a negative externality where the cost of pollution is passed onto others who do not benefit from the production, leading to inefficiency and market failure.

Economists View Pollution as an Economic Problem That Arises Because:​

Economists View Pollution as an Economic Problem That Arises Because: