Issues in Economics Today 7th Edition by Robert Guell

Exercise 3

If a chemical does environmental damage but is used in the production of a good that provides satisfaction to the consumer and profit to the producer, an economist
A) will insist that the market be left alone.
B) will insist that the chemical be completely banned.
C) will seek to impose a tax on the good so that the net benefit to society (including the environmental damage) is maximized.
D) will suggest that consumers voluntarily cut back their consumption.