A basic economic problem encountered when evaluating some of the more recent environmental initiatives,such as proposals designed to halt global warming or reduce acid rain,is that
A) economic growth will be increased in the developing countries at the expense of growth in developed countries.
B) since environmental changes are not affected by human production or consumption, these policies have no impact on the problem.
C) the cost of these environmental initiatives may exceed the estimated value of the benefits.
D) since all such proposals are demonstrated to be effective, there is no means to decide which approach is best.
E) most efforts to control pollution result in the creation of a new form of pollution; for example, reducing atmospheric pollution increases water pollution.

Question

Quizplus · Accepted Answer

The basic economic problem encountered when evaluating some of the more recent environmental initiatives is that the cost of these initiatives may exceed the estimated value of the benefits. This is known as the cost-benefit analysis and it is a common practice in economics to determine whether a policy or investment is worth the cost. In the case of environmental initiatives, the benefits of reducing pollution or halting global warming may be significant, but the cost of implementing these policies must also be taken into account. If the cost of the policy exceeds the estimated value of the benefits, then it may not be a feasible or efficient solution to the problem.

A Basic Economic Problem Encountered When Evaluating Some of the More