Pollution and other environmental external coststhey exist because a are a recen
ID: 1127799 • Letter: P
Question
Pollution and other environmental external coststhey exist because a are a recent occurrence and are found only in highly developed economies, they are so large that the marginal cost of pollution is essentially zero. b. have been present in varying amounts throughout history these resources are shared by everyone so there are no clear property rights to them. c. should be reduced to zero; humans are basically polluters d. create higher market prices in an unregulated economy; nobody is interested in non-polluted natural resources. Suppose a lighthouse, which is a public good, is provided in an economy with only two consumers, Popeye and Captain Hook. If Popeye values the lighthouse at $4,000 per year, and Captain Hook values it at $3,000 per year, the economy's marginal benefit of the lighthouse per year is a. $7,000. b. $4,000 c. $3,000. d. $1,000. What causes the welfare trap under traditional welfare arrangements? a. Low-income people cannot afford to acquire human capital. b. The break-even income is too high to be reached c. There are no jobs available in low-income areas d. As earned market income increases, welfare benefits are withdrawn Which of the following statements is true (correçt)? a. Derived demand for labor depends on the demand for the product labor produces. Unions can either increase demand for, or decrease supply of labor c. Investment in human capital is expected to increase the demand for those workers. d. All of the above What can a student in college do to increase demand for his or her labor services? Nothing, there is no way individuals can affect demand for their own services a. b. He or she should quit school and look for a job. c. He or she should move to a state with a large population d. He or she should increase his or her marginal product in producing valuable goods or servicesExplanation / Answer
Question 1
If we look through the history then it can be seen that environmental cost and pollution were present throughout.
The reason behind these costs is that resources such as environment acts as common resource with no clearly defined property rights. This leads to unsustainable usage and inefficient outcome.
So, pollution and other environmental external costs have been present in varying amounts throughout history, they exist because these resources are shared by everyone so there are no clear property rights to them.
The correct answer is the option (b).