In the Case of Global Pollution, a Nation That Pollutes

question 73

Multiple Choice

In the case of global pollution, a nation that pollutes gets benefit from production but:

• A) has to pay for it in terms of dirty air and water.
• B) never receives any negative consequences.
• C) cannot control the amount of pollution by private firms.
• D) will not suffer the full costs of its own pollution and so has little incentive to control it.

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Definitions:

Law Of Comparative Advantage

An economic theory stating that a country should specialize in producing and exporting goods for which it has a lower opportunity cost than its trading partners.

Specialization And Trade

An economic strategy where individuals or nations focus on the production of certain goods or services where they have a comparative advantage, leading to increased efficiency and trade benefits.

Total Output

The total quantity of goods and services produced in an economy at a given time period.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per unit cost as output increases.