Question

For the purpose of protecting the environment, upon which of the following approaches do we rely more and more as time goes by?

a. adherence to the notion of the invisible hand

b. command-and-control policies

c. the development and enforcement of regulations

d. the requirement that decision makers bear the full costs of their actions

In the absence of externalities, the "invisible hand" leads a market to maximize

a. producer profit from that market.

b. total benefit to society from that market.

c. both equality and efficiency in that market.

d. output of goods or services in that market.

Since almost all forms of transportation produce some type of pollution,

a. the government should ban all transportation.

b. the government should ban all pollution.

c. society has to weigh the cost and benefits when deciding how much pollution to allow.

d. refrain from intervening because the market can best solve this problem.

Answer 1

1. For the purpose of protecting the environment ,the development and enforcement of regulations approach upon which we rely more and more as time goes by. Hence, option(C) is correct.

2. In the absence of externalities ,the "invisible hand" leads a market to maximize total benefit to society from that market. Hence, option(B) is correct.

3. Since almost all forms of transportation produce some type of pollution , society has to weigh the costs and benefits when deciding how much pollution to allow. Hence, option(C) is correct.