The USgovernment Has Frequently Used a "Command-And-Control" Approach in Dealing with with Pollution.Which

question 162

Multiple Choice

The U.S.government has frequently used a "command-and-control" approach in dealing with pollution.Which of the following describes this approach?

• A)The government uses taxes in order to internalize the externalities caused by pollution.
• B)The government uses subsidies to encourage firms to use new technology that reduces pollution.
• C)The government imposes quantitative limits on the amount of pollution firms are allowed to generate.
• D)The government distributes information to consumers and producers on how to reduce pollution.

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Definitions:

Binding Price Floor

A legally established minimum price above the equilibrium price, causing a surplus in the market.

Hybrid Cars

Vehicles powered by a combination of an internal combustion engine and one or more electric motors, utilizing both fuel and electricity.

Consumer Surplus

The gap between what consumers are prepared to pay for a good or service and what they actually do pay.

Binding Price Floor

A minimum price set by the government for certain goods and services that is above the equilibrium price, causing a surplus.