Government Regulators Want to Limit Pesticide Runoff to Its Efficient

question 5

Multiple Choice

Government regulators want to limit pesticide runoff to its efficient level. Unfortunately, government regulators are uncertain how marginal abatement costs behave with changes in runoff; fortunately, they do know that marginal abatement costs are less sensitive to changes in runoff than marginal costs of pollution. In this situation, the use of a _____ leads to a smaller deadweight loss than a _____.

• A) quota; Pigouvian tax
• B) quota; quantity restriction
• C) Pigouvian tax; quantity restriction
• D) Pigouvian subsidy; Pigouvian tax

---

Definitions:

Cyberspace

A virtual environment comprised of networked computers and digital platforms where users interact, share information, and conduct transactions.

Negligence Per Se

An action or failure to act in violation of a statutory requirement.

Statutory Requirement

A statutory requirement is a mandated provision set forth by legislation that must be adhered to.

Comparative Negligence

A legal doctrine that allocates damages based on the degree of fault of each party involved in an incident where both parties are partially to blame.