Some Economists Believe That a Command-And-Control Policy to Reduce Emissions

question 2

Multiple Choice

Some economists believe that a command-and-control policy to reduce emissions is inequitable. One reason for their conclusion is that

• A) such a policy is equivalent to economic totalitarianism.
• B) historically such policies have driven firms out of business.
• C) because of the bureaucracy involved, such policies are expensive to implement.
• D) firms with different marginal costs of abatement might not be assigned a pollution level that sets marginal benefit equal to marginal cost.

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Definitions:

Copper Rotor

A copper rotor is a component of an electric motor, where copper is used in the rotor windings due to its high electrical conductivity, improving motor efficiency.

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