While Pollution Regulations Yield the Benefit of a Cleaner Environment

question 78

Multiple Choice

While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This statement illustrates the principle that

• A)trade can make everyone better off.
• B)rational people think at the margin.
• C)people face tradeoffs.
• D)people respond to incentives.

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Definitions:

Cultural Imperialism

The practice of promoting and imposing a culture, usually that of a politically dominant nation, over a less powerful society.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood by others in terms of that individual's own culture.

Cultural Leveling

The process where distinct cultures become more similar to each other, often due to globalization and international influences.

Cultural Diffusion

The conveyance of cultural practices and social norms from one group to another.