Question

The Hazelton coal-processing plant is a major employer in the Hazelton area, but national environmental regulations will force it to close if it continues to use old, polluting processing methods. However, to update the plant to use newer, cleaner methods would be so expensive that the plant will close unless it receives the tax break it has requested. In order to prevent a major increase in local unemployment, the Hazelton government is considering granting the plant’s request. Which of the following would be most important for the Hazelton government to determine before deciding whether to grant the plant's request?

• A. Whether the company that owns the plant would open a new plant in another area if the present plant were closed
• B. Whether the plant would employ far fewer workers when updated than it does now
• C. Whether the level of pollutants presently being emitted by the plant is high enough to constitute a health hazard for local residents
• D. Whether the majority of the coal processed by the plant is sold outside the Hazelton area
• E. Whether the plant would be able to process more coal when updated than it does now

Hint:

When making policy decisions, consider the broader economic and social impacts, such as employment and public health.

Answer 1

The Correct Option is B

Step 1: Understanding the context.
The government’s decision to grant the tax break depends on the potential for job losses due to the modernization of the plant. If the new methods reduce employment, the government may need to reconsider its decision.
Step 2: Analyzing the options.
- (A) This is not directly relevant to the issue of local unemployment.
- (B) This is the correct answer. Determining if the updated plant would employ fewer workers is essential to evaluating the impact on local unemployment.
- (C) While health concerns are important, the focus of the decision is on employment and economic impact.
- (D) This doesn’t directly relate to the employment issue at hand.
- (E) This is not directly relevant to the decision about employment and unemployment.
Step 3: Conclusion.
The correct answer is (B), as it addresses the key concern of local unemployment.