Question

cymalker in the state of Cargomix, believes that air and water pollution should be reduced to zero. Which of the folowing is true? O This is good policy, which is backed up by sound economics O policies that are enacted to reduce poliustion will always end up increasing oerall production in the economy O while it is admirable for a policymaker to want to reduce air and water pollution to zero, there will likely be unwanted secondary effects from this policy O It firms are required to redace pollution levels to zero, the prices of goods and services produced will fall significantly Grade It Now Save & Continue Centnue ithout cavin

Answer 1

reducing pollution to zero means either adopt new technology or decrease production. Both of these will increase the price. So this policy has a secondary effect. The policy of reducing pollution to a minimum level is healthy for the economy but zero level pollution is not good for the economy.

The third option is correct.