Economists consider environmental pollution to be a(n)
A)externality.
B)pure public good.
C)allocatively efficient outcome.
D)public interest outcome.

Question

Quizplus · Accepted Answer

Environmental pollution is considered an externality because it is an unintended consequence of economic activity that affects individuals or society as a whole without being reflected in the market prices. This market failure occurs because the polluter does not bear the full cost of their actions, while others suffer the negative impacts. Therefore, government intervention may be necessary to internalize the external costs and achieve an efficient outcome.

Economists Consider Environmental Pollution to Be A(n)