Refer to the figure above. Curve A represents the trade-off between market goods and environmental quality in a developed country. Curve B represents the same in a less-developed country. In order for both firms to achieve the same level of marketed output (c₁), Country can attain ________ levels of environmental quality. A) higher B) lower C) equivalent D) indeterminate

Question

Quizplus · Accepted Answer

By comparing the two curves, we can see that Curve A has a higher level of environmental quality for the same level of output as compared to Curve B. Thus, to achieve the same level of output, Country can attain higher levels of environmental quality (as represented by the vertical distance between the two curves at c₁).

Refer to the Figure Above