Section 4 and 6 introduce costs and tradeoffs that we see when we enact environmental protection. The potential side effects of eliminating pollution are applications of the Law of Diminishing Marginal Utility, which we saw in an earlier chapter section "How Individuals Make Choices Based on Their Budget Constraint." Your task is to:

1. Explain potential issues if we have a policy that only seeks to maximize market productivity?
2. Explain potential issues if we implement a policy that only concerns environmental protection?

Learning Objective: 12.4.1 - Evaluate the benefits and costs of environmental protection; 12.4.3 - Apply marginal analysis to illustrate the marginal costs and marginal benefits of reducing pollution; 12.6.1 - Apply the production possibility frontier to evaluate the tradeoff between economic output and the environment