Text 1 Critics of strict environmental regulations, such as carbon taxes, often argue that these policies are detrimental to the economy. They cite economic models showing that imposing such costs on manufacturing leads to an immediate spike in consumer prices and a reduction in factory workforce. Economist Dr. Hans Weber’s analysis of the 2015 industrial regulations confirms this, showing a 3% dip in regional GDP in the year following implementation.
Text 2 Green economy analyst Dr. Amara Okafor argues that evaluating environmental policy requires a "decadal perspective." Her research indicates that while initial implementation costs do cause a temporary contraction, these regulations spur innovation in efficiency and green technology. Over a ten-year period, the industries that adapted to the new standards became more profitable and hired more skilled labor than they had prior to the regulations, eventually boosting GDP beyond the baseline.
Based on the texts, how would Dr. Okafor (Text 2) most likely respond to Weber’s analysis (Text 1)?
By arguing that Weber’s data is fabricated and that GDP actually rose in the first year
By suggesting that Weber’s focus on the immediate aftermath fails to capture the eventual economic recovery and growth
By claiming that the environmental benefits of the regulations are more important than the economic losses Weber identified
By conceding that the regulations will permanently suppress GDP but arguing they are morally necessary
Correct Answer: B
Choice B is the best answer. Text 1 cites a study showing a GDP dip in the year following regulations (short-term). Text 2 argues that one must look at a "decadal perspective" (long-term) and that, over 10 years, the economy grows. Therefore, Okafor would criticize Weber’s analysis for focusing only on the immediate ("short-term") effects and missing the long-term recovery.
Choice A is incorrect because Okafor acknowledges the "temporary contraction" (agreeing with the short-term data) but disputes the long-term implication. Choice C is incorrect because Okafor argues that the regulations are economically beneficial in the long run, not just environmentally beneficial. Choice D is incorrect because Okafor argues GDP eventually boosts beyond baseline, not that it is permanently suppressed.