An Important Reason That Direct Controls Are Usually Inefficient in Reducing

question 30

Multiple Choice

An important reason that direct controls are usually inefficient in reducing pollution is that

• A)firms have little incentive to comply with them.
• B)they create new pollution as they eliminate existing pollution.
• C)it costs too much to make sure that firms comply with the regulations.
• D)they generally garner little political support and thus eventually fail.
• E)different firms have different marginal costs of pollution abatement.

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