Chapter 39, Problem 4MCQ

To determine

To know:

The factor that is true about environmental quality.

Explanation of Solution

In the context of the economy, there is an inverse relationship between economic growth and the level of environmental quality. A higher economic growth indicates a higher level of production of goods and services in an economy. To produce more, more natural resources will be used and in return, the production process will emit harmful gases and products into the environment. These harmful emissions reduce the quality of water, air, and other natural resources in the environment.

So, it is not possible to increase the level of production without degrading the environmental quality.

The environment degrades in terms of rising greenhouse gas emissions, level of global warming, and melting of glaciers. So, it is true that the increase in the emission of carbon and other greenhouse gases is raising the temperature of our planet.

Thus, options “c” and “d” both are correct.

The other options are incorrect:

• Government policy has no direct link with environmental quality as government agencies can frame the policies to improve the quality of the environment.
• Environmental quality and economic growth usually cannot go hand in hand.
• Environmental stories are both local and global issues.

Economics Concept Introduction

Environment quality is the preservation of the environment with its endowment of natural resources so that it does not get affected by economic aspects such as the production and consumption of goods and services.