The Government Prefers a Market-Based Approach to Reduce Firms' Emissions

question 176

Multiple Choice

The government prefers a market-based approach to reduce firms' emissions of a toxic gas but wants to make certain that no more than 1,000 cubic yards of the gas are ever emitted in a single day.The most efficient policy under these circumstances is likely to be a system of

• A)per-unit taxes on emissions of the gas.
• B)per-unit taxes on the goods produced by firms that emit the gas.
• C)subsidies to firms that agree not to emit the gas.
• D)sales of permits to emit specified quantities of the gas on specified days.

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Definitions:

Coping Methods

Coping methods are strategies or techniques that individuals use to manage or mitigate stress and emotional discomfort.

Emotional

Related to feelings or expressions of emotion, often indicating a person's mood or affective state.

Cognitive

Relating to mental processes such as awareness, perception, reasoning, and judgment.

Intellectual

Relating to the ability to think and understand ideas and information at a high level.