Market solutions to environmental pollution fallaciously presume that what is good and rational for a collection of individuals is necessarily good and rational for a society. As a result, important ethical and policy questions can be missed and that can lead to serious environmental harm. Under the market model, for example, restricting sales of sports utility vehicles (SUVs) and treating them as trucks with higher gas mileage standards or increasing taxes on gasoline would never be considered.

Question

Business

Arjun Eaton

17 May, 18:19

Market solutions to environmental pollution fallaciously presume that what is good and rational for a collection of individuals is necessarily good and rational for a society. As a result, important ethical and policy questions can be missed and that can lead to serious environmental harm. Under the market model, for example, restricting sales of sports utility vehicles (SUVs) and treating them as trucks with higher gas mileage standards or increasing taxes on gasoline would never be considered.

+2

Answers (1)

Know the Answer?

Megan Wu · Answer 1

True.

Explanation:

The Market Model is an economic model that has the main function of establishing a stable relationship between the profitability of a financial asset and the restability of the market. This relationship is made in a linear manner and always seeking to obtain better revenue results and the correct calculation of the estimated normal profitability. In summary, this model seeks to show the profitability of the company's shares in relation to the profitability of the market.

Through this, we can affirm that in a market model it would never be considered to restrict sales of sports utility vehicles (SUVs) and treat them as trucks with higher mileage standards or to increase gasoline taxes.