Economists View Pollution as an Economic Problem That Arises Because

question 102

Multiple Choice

Economists view pollution as an economic problem that arises because

• A)private enterprise always minimizes the amount of pollution produced
• B)profitable firms rarely pollute
• C)as the economy grows, the level of pollution declines
• D)firms that pollute do not pay the full social cost of producing their output
• E)pollution costs are borne by the consumer

---

Definitions:

Foreign-Produced Shoes

Shoes that are manufactured outside of one's home country.

Tariff

A tax imposed on imported goods, usually to protect domestic industries or to generate revenue.

Economic Efficiency

A condition in which resources are allocated in such a way that maximizes the net benefit to society, ensuring that goods and services are produced and distributed in the most cost-effective manner.

Import Quotas

Limits set by a government on the quantity of a certain good that can be imported into a country, used to protect domestic industries.