While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This statement illustrates the principle that
A)trade can make everyone better off.
B)rational people think at the margin.
C)people face tradeoffs.
D)people respond to incentives.

Question

Quizplus · Accepted Answer

This statement illustrates the principle that people face tradeoffs, as it highlights the tradeoff between a cleaner environment and the economic costs to firms and individuals.

While Pollution Regulations Yield the Benefit of a Cleaner Environment