If the Government Has Enough Knowledge About a Market and the Damage

question 21

Multiple Choice

If the government has enough knowledge about a market and the damage it causes through pollution, it can force the socially optimal output

• A)through an emission fee.
• B)using a ban on pollution.
• C)by deregulating to eliminate the monopoly.
• D)All of the above.

---

Definitions:

Rocky Mountains

A major mountain range in western North America, extending from Canada through the United States.

Sulfur Dioxide

A toxic gas with a sharp, irritating smell, commonly produced by volcanic activity and industrial processes.

Acid Rain

Rainfall made acidic by atmospheric pollution that causes environmental harm, typically to forests and lakes.

Shale Gas

Natural gas that is found trapped within shale formations.