Economic incentives are designed to make individual self-interest coincide with social interest. According to economists, which of the following methods of pollution control best uses economic incentives to reduce pollution?
A) rewarding environmental groups for monitoring the activities of private firms that produce products which generate pollution
B) imposing quantitative limits on the amount of pollution and imposing a penalty for non-compliance with these limits
C) requiring the installation of specific pollution control devices
D) instituting a system of tradable emission allowances
Answer: D
You might also like to view...
Evaluate the Argentinean Convertibility Law of April, 1991
What will be an ideal response?
Which of the following can explain the upward slope of the short-run aggregate supply curve?
a. nominal wages are slow to adjust to changing economic conditions b. as the price level falls, the exchange rate falls c. an increase in the money supply lowers the interest rate d. an increase in the interest rate increases investment spending
Shutting down a firm's operation and quitting production is equivalent to exiting the industry.
Answer the following statement true (T) or false (F)
A movement along the demand curve to the right may be caused by a(n)
A. rise in the price of inputs. B. decrease in income. C. increase in supply. D. fall in the number of substitute goods.