In a Situation Where There Is No Incentive to Cut

question 28

Multiple Choice

In a situation where there is no incentive to cut pollution
Because it will make domestic firms less competitive, it will
Improve world welfare if:

• A)nations impose tariffs on polluters.
• B)there is an international agreement so that every nation regulates global pollutants and no firms have competitive
• Advantages because of lax pollution laws.
• C)there is a ban on production until we can scientifically solve our pollution problems.
• D)we allow the market to work in this case.

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