• anonymous
how does pollution effect households?
  • Stacey Warren - Expert
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  • chestercat
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  • anonymous
What do you mean exactly by this?
  • 96mertcank96
First of all. Pollution is a negative externality. Negative externality is where production or consumption a item result in a external cost which is bared by a third party. How does water pollution affect area businesses? If local industry is farming, farmer would not be able to use the water for farming purpose. They would have to import clean water or install water filter to clean the polluted water. Therefore increasing their cost of production and making them less competitive. How does water pollution affect our government at the local, state, and national levels? Water pollution may cause illness and diseases. As a result, population will start getting ill. Therefore, productivity of workforce will decrease. As productivity decrease, national output (GDP) will decrease. Furthermore, in country such as the UK where government provides healthcare, the cost of providing health care will go up. How does water pollution affect the rest of the world? Similar situation as above. Water pollution means governments around the world will have to spend money cleaning up the pollution. How does water pollution affect resources, goods and services, and finances? As government divert funding to clean up the pollution. Opportunity cost will arise. I.e there will be a trade off between cleaning up pollution or reducing tax. Therefore, fund may be allocated to a more productive project like building roads or hospital rather than cleaning up a cost imposed by a third party.

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