”One of the failings of a market system is the damage to the environment. Pollution would not exist with a centrally planned economy.” Evaluate this statement.
What will be an ideal response?
Market systems fail to include external costs, resulting in pollution. But pollution in centrally planned economies has been even higher. China, Eastern Europe, and the former Soviet Union all have grave environmental problems.
You might also like to view...
According to supply-side economics, a(n) ________ in the tax rate tends to increase the labor supply and ________ aggregate output
A) decrease; decrease B) increase; decrease C) increase; increase D) decrease; increase
Which of the following would be categorized as an implicit cost?
a. not being able to spend your $10,000 savings if you sink the money in your business b. the cost of purchasing supplies for your house-cleaning business c. the cost of purchasing auto insurance for your dry-cleaning delivery business A) a only B) a and c only C) b and c only D) all of the above
When Goodyear increases its production when Michelin reduces its production, Goodyear is playing a
A) negative-sum game. B) cooperative game. C) non-cooperative game. D) reaction function game.
Which one of the following would supply dollars to the foreign exchange market?
a. the spending of U.S. tourists in Europe b. the purchase of U.S. automobiles by Japanese consumers c. the sale of U.S. automobiles to European consumers d. the purchase of an American electronics factory by a Japanese investor