In a market economy the amount of pollution is:
A.	likely to be greater than the efficient amount because polluters do not bear the full costs of pollution.
B.	likely to be the efficient amount because in general the price system causes production to be carried out to the point where quantity demanded and quantity supplied are equal.
C.	likely to be less than the efficient amount because the government regulations designed to reduce pollution increase firms’ production costs causing them to decrease output.
D.	is likely to be the efficient amount due to the regulatory powers of agencies like the Environmental Protection Agency.
Answer:A
In a market economy the amount of pollution is:
A.	likely to be greater than the efficient amount because polluters do not bear the full costs of pollution. B.	likely to be the efficient amount because in general the price system causes production to be carried out to the point where quantity demanded and quantity supplied are equal. C.	likely to be less than the efficient amount because the government regulations designed to reduce pollution increase firms’ production costs causing them to decrease output. D.	is likely to be the efficient amount due to the regulatory powers of agencies like the Environmental Protection Agency.