While Pollution Regulations Yield the Benefit of a Cleaner Environment

Multiple Choice

While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This statement illustrates the principle that

A) trade can make everyone better off.
B) rational people think at the margin.
C) people face tradeoffs.
D) people respond to incentives.