Mainstream economists see pollutants like greenhouse gases as a negative externality. So when do economists deem pollution excessive?When the air and water become too dirty to drink or breatheWhen the government has to interfereWhen companies do not truly reflect the cost of their products to society

Imposing taxes that increase as a firm's pollution increases is often recommended by economists as a means to reduce pollution. The reason for this recommendation is that such taxes would likely aeliminate pollution completely bencourage firms to use the most efficient method to reduce pollution cbe paid out of firm's profits and not paid for by higher consumer prices dencourage firms to increase production

Air pollutionAs manufacturers produce cars, televisions, and other goods – they leave Carbon emissions. An example of this was visible in 1952 during ‘The Great Smog of London’. Over the course of 5 days, it is estimated that 6,000 died from air pollution. Obviously this is a very extreme case but is an example of how there can be serious external effects from air pollution.Who is the third party in this serious case of air pollution?What is the externalities?Good or bad?When does the spillover occurs?

The economically efficient amount of pollution will be zero when which of the following is true?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aWhen costs of pollution are greater than the marginal costs of pollution reduction at all levels of pollution.bWhen costs of pollution are less than the marginal costs of pollution reduction at all levels of pollution.cUnder no circumstances. Some pollution is always economically efficient.dUnder all circumstances. It is never economically efficient to have consumers or producers force others to pay the costs of pollution.

The adverse effects of greenhouse gases are therefore 'external' to the market, which means there is usually only an ethical-rather than an economic-incentive for businesses and consumers to reduce their emissions.

The process of firms buying and selling the right to pollute is an example of which type of environmental regulation?Market-based.Control.Command.Emissions charges.