Question

If pollution resulting from the production of goods and services hurt the environment, should the government...

If pollution resulting from the production of goods and services hurt the environment, should the government take action to eliminate it completely? Discuss.
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Eliminating pollution completely implies that production has been reduced to zero. Thus, it would not be a rational decision to reduce the output to zero to eliminate pollution completely.

Government must strike balance between the benefits arise from output and pollution cost associated with output.

Firms must be compelled to operate where Marginal social benefits are equal to marginal social cost.

Margnal social benefit = Marginal social cost.

Or

Marginal Benefit of output = Marginal Cost of pollution arising from output.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
in an economy ,the government... a-produces public goods and services b.purchases factors of production c.purchases goods...
in an economy ,the government... a-produces public goods and services b.purchases factors of production c.purchases goods in the good market d.all of the abovre
Discuss the concept of quality in the production of goods and services.
Discuss the concept of quality in the production of goods and services.
Suppose the government wants to reduce the total pollution emitted by three firms. Currently, each firm...
Suppose the government wants to reduce the total pollution emitted by three firms. Currently, each firm is creating 4 tons of pollution, for a total of 12 tons. The government is considering the following two methods to reduce total pollution to 6 tons: 1. The government sets regulation specifying that each of the three firms must cut its pollution in half. 2. The government allocates two tradable pollution permits to each of the three firms. Each permit allows the firm...
Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each...
Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. If the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods: Available Methods to Reduce Pollution 1. The government sets pollution standards using regulation. 2. The government allocates tradable pollution permits. Each firm faces different costs,...
A tax on production that causes air pollution is called Select one: a. an effluent fee....
A tax on production that causes air pollution is called Select one: a. an effluent fee. b. a pollution permit. c. a specific standard. d. an emissions fee. Economists and environmentalists differ in that Select one: a. environmentalists often want to eliminate all pollution, but economists may believe that some pollution is acceptable if society values the production of the goods that cause the pollution. b. environmentalists care about the environment, but economists do not. c. economists rarely support a...
From where will the government get the funds to provide more subsidies on goods and services...
From where will the government get the funds to provide more subsidies on goods and services without raising taxes? Should we let the deficit increase further and thereby add to the more than $21 trillion of debt? You have also suggested increasing corporate taxes, just last year the corporate tax was lowered from 35%, which was one of the highest in developed economies, to 21%. Do you think that was a wrong move and we should have instead increased it?
Public goods are often thought to be goods or services that are provided by the government,...
Public goods are often thought to be goods or services that are provided by the government, but that is confusing cause and effect. What are the characteristics of a public good? What is an example of a good that is often provided by the government but is NOT a public good? What is an example of a good that is often provided by the government and IS a public good? What is an example of a good that is rarely...
The Gross Domestic Product or GDP is the monetary measure production of final goods and services...
The Gross Domestic Product or GDP is the monetary measure production of final goods and services within the boundary of the United States in a financial year or specific period. The GDP tells us if the economy is expanding due to producing more goods and services or contracting due to less output. Anything that it is built in the United States contributes to the figures instead of abroad. The Gross Domestic Product or GDP does not measure the quality of...
The Government may prevent negative external effects by levying a tax on goods and services that...
The Government may prevent negative external effects by levying a tax on goods and services that result in additional costs. Government intervention is needed to help "balance" negative externalities. With a negative external effect, the goods' value is higher than assumed. Because the social marginal cost curve is higher than the private marginal cost curve, the Government should intervene to increase taxes on goods such as imposing tariffs on polluting industries or taxing bad goods such as alcohol.Which is why...
D. Show why a $100 increase in government purchases of goods and services will have a...
D. Show why a $100 increase in government purchases of goods and services will have a larger effect on real GDP than a $100 increase in government transfers or a $100 decrease in taxes by completing the accompanying table. The economy has a marginal propensity to consume (MPC) of 0.6. When answers aren’t whole dollars round each answer to two (2) decimal places (e.g., 51.6678 = 51.67) before summing in 18 – 20. All submitted answers should also be entered...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT