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:

Kin Selection

An evolutionary strategy that favors the reproductive success of an organism's relatives, even at a cost to the organism's own survival and reproduction.

Altruism

The desire to help another purely for the other person’s benefit, regardless of whether we derive any benefit.

Prosocial Video Games

Video games designed with the purpose of promoting positive social behaviors, such as cooperation, helping, and empathy.

Social Exchange

A theory that suggests human relationships are formed based on a cost-benefit analysis and the principle of reciprocity.