Question

2. According to economists, people pollute because

a. They have low self esteem

b. They are inconsiderate and rude

c. They only care about maximizing profits

d. It is the least expensive solution to the problem of what to do with their residuals from production and consumption

3。______ cause private and social marginal cost curves to diverge while _______cause private marginal benefit and social marginal benefit to diverge.

a. External benefits; external costs

b. External costs; external benefit

c. Market failures; public goods

d. Taxes; subsidies

Please explain your answer

Answer 1

2. According to economists people pollute, because people being private individual, their motive is maximization of their satisfaction level.

c. They only care about maximizing profits

3.b. External Costs cause private and social marginal cost curves to diverge while External Benefits cause private marginal benefit and social marginal benefit to diverge.