If China Decides to Enact Laws to Clean Up the Environment,what

question 26

Multiple Choice

If China decides to enact laws to clean up the environment,what would be the effect on GDP?

• A)GDP would increase reflecting the fact that the environment would be cleaner.
• B)GDP would decrease if the pollution controls reduce productivity by more than the cost of the controls.
• C)GDP would increase as the citizens of China were made happier as the environment was cleaned up.
• D)GDP would increase as the environmental costs of pollution were not included in the calculation of GDP.

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Definitions:

Price of Emissions

Concerns the cost associated with releasing pollutants into the environment, often factored into the production costs for companies under environmental regulations.

Differential Pricing

A pricing strategy where a company charges different prices for the same product or service based on various factors like market segment, purchase volume, or buying behavior.

Product Availability

A measure of the extent to which goods are in stock and accessible for purchase by customers, often critical for customer satisfaction and sales performance.

Total Profits

The entirety of financial gain accumulated by a business after subtracting all expenses from total revenue.