Why policy usually result in a loss in economic efficiency


Problem

1. Are there economic reasons for a country to reject a policy of eliminating all pollution? If a country does nothing to eliminate pollution, why does that usually result in a loss in economic efficiency? Is there a correct level of pollution to allow?

2. As a country's GDP rises, how do you expect that to affect the country's air quality? As a country's GDP rises, what offsetting factors exist regarding the benefits from lower concentrations of SO2 in the air and the costs of reducing those concentrations?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: Why policy usually result in a loss in economic efficiency
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