Which of the following statements is correct?
A) Because a clean environment is a public good, a feasible goal is to eliminate all pollution, regardless of the cost.
B) Rich countries usually have cleaner environments than poor countries because a clean environment is like other normal goods in that it has a positive income elasticity.
C) Clean water and clean air are priceless goods.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Rich countries often have cleaner environments because as income increases, people are willing to spend more on environmental quality, similar to other normal goods with positive income elasticity.

Which of the Following Statements Is Correct