How does a tradeoff exist between a clean environment and a higher level of income?
A) Studies show that individuals with higher levels of income purchase more environmentally friendly products than low-income individuals.
B) To pay for pollution cleanup, the government must increase taxes, which lowers income.
C) Laws that reduce pollution raise costs of production and reduce incomes.
D) By employing individuals to clean up pollution, employment and income both rise.

Question

Quizplus · Accepted Answer

Laws that reduce pollution can increase the costs of production for companies, which can result in lower profits and lower incomes for employees. Companies may also choose to relocate to countries with less strict environmental regulations, which can further impact domestic employment and income levels. Therefore, there is a tradeoff between having a clean environment and maintaining higher income levels.

How Does a Tradeoff Exist Between a Clean Environment and a Higher