A Pollution- Control Policy That, in Principle, Can Perfectly Internalize

question 23

Multiple Choice

A pollution- control policy that, in principle, can perfectly internalize pollution externalities is

• A) an emissions tax.
• B) fines for "over- polluters".
• C) emission limits.
• D) moral suasion.
• E) none of the above can internalize the externality.

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Definitions:

Government-operated Firm

is a business entity controlled or owned by the government to provide goods or services to the public.

Residual Claimants

Individuals or entities that have a claim on the remaining assets of a company after all liabilities have been satisfied, typically the shareholders.

State University

A publicly funded university that is primarily supported by a state government.

Barrier to Entry

Factors that prevent or hinder companies from entering into a specific market or industry.