Answer to Question #62243 in Economics for Anna

Question #62243
a. Evaluate the statement by the economist: "Prices in the U.S. are artificially low. You're not paying the costs of pollution, and that is why China is an environmental catastrophe." (Hint: the economist has identified a type of market failure.)
1
Expert's answer
2016-10-05T13:45:03-0400
Current model of human development does not take into account external effects of production – environmental pollution. On the one hand, we produce goods, and on the other hand, we have to deal with health problems caused by dirty environment. The price of environmental pollution is not included to the prices of goods. This does not stimulate sufficiently a shift to clean production technologies.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS