A Law Stating That Power Plants Are Allowed Zero Emissions

question 151

Multiple Choice

A law stating that power plants are allowed zero emissions of sulfur dioxide is an example of ________.

• A) the Coase Theorem
• B) command-and-control regulation
• C) a Pigovian corrective tax
• D) a Pigovian corrective subsidy

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Definitions:

Indorses

To sign a document, typically on the back, to acknowledge something or to transfer rights to another.

Liable

Responsible by law; legally obligated to compensate for harm or damage caused by one’s actions or negligence.

Increases Amount

Refers to the act of raising the quantity or value of something.

Liable

Legally responsible or obligated.