Which of the following is true of environmental degradation?
(i) it is a common resource problem
(ii) it can be remedied through Pigovian taxes
(iii) it is a form of market failure
(iv) it is always best resolved by direct regulation
A)(i), (ii) and (iii)
B)(i) and (ii)
C)(i) and (iii)
D)(i), (iii) and (iv)

Question

Quizplus · Accepted Answer

Environmental degradation is indeed a common resource problem because it often involves the overuse or misuse of publicly accessible resources (i). It can be addressed through Pigovian taxes, which are levied to correct the negative externalities caused by environmental harm (ii). It is also considered a form of market failure because markets fail to allocate resources efficiently when negative externalities are present (iii). The statement that it is always best resolved by direct regulation (iv) is not necessarily true, as the best solution can vary depending on the specific environmental issue and context.

Which of the Following Is True of Environmental Degradation