The U.S. government has frequently used a "command-and-control" approach in dealing with pollution. Which of the following describes this approach?
A) The government uses taxes in order to internalize the externalities caused by pollution.
B) The government uses subsidies to encourage firms to use new technology that reduces pollution.
C) The government imposes quantitative limits on the amount of pollution firms are allowed to generate.
D) The government distributes information to consumers and producers on how to reduce pollution.
Answer: C
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A) i only B) i and iii C) ii and iii D) i, ii, and iii E) ii only
Demand for a good will always increase when
a. the price of a complementary good falls b. the price of a substitute good falls c. tastes change d. incomes decrease e. the price of the good falls
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a. reduce the living standards of Americans. b. are not included in the M1 money supply. c. account for approximately half of all U.S. currency issued by the Fed. d. are hard to explain since the dollar is not legal tender outside the United States.
If a producer offers a price that is in excess of a consumer's valuation of the good, the consumer:
A. must revalue the good. B. will refuse to purchase the good. C. must buy the good at that price. D. None of the statements associated with this question are correct.