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 actually pollute less than low-income individuals.
B)To pay for pollution clean-up, 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 and regulations that aim to reduce pollution often impose costs on businesses, which may reduce their profits and incomes. For example, companies may need to invest in expensive pollution control technologies or switch to more expensive, but less polluting, inputs. These costs may be passed along to consumers in the form of higher prices, which can further reduce their purchasing power and overall income. Therefore, there is often a tradeoff between a clean environment and a higher level of income, as the former may require sacrifices in the short-term that can have negative effects on economic growth and individual well-being.

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