Economic Incentives Are Designed to Make Individual Self-Interest Coincide with Social

question 186

Multiple Choice

Economic incentives are designed to make individual self-interest coincide with social interest.According to economists, which of the following methods of pollution control best uses economic incentives to reduce pollution?

• A)rewarding environmental groups for monitoring the activities of private firms that produce products which generate pollution
• B)imposing quantitative limits on the amount of pollution and imposing a penalty for non-compliance with these limits
• C)requiring the installation of specific pollution control devices
• D)instituting a system of tradable emission allowances