Which of the Following Is Most Consistent with a Government

question 136

Multiple Choice

Which of the following is most consistent with a government policy toward pollution as suggested by the Coase theorem?

• A)Set strict control of the total pollution level.
• B)Impose a tax on producers that pollute.
• C)Determine which firms can pollute and which firms cannot pollute.
• D)Nationalize industries that pollute.
• E)Issue tradable permits for pollution.