The Most Efficient Way to Get Firms to Reduce Pollution

question 105

Multiple Choice

The most efficient way to get firms to reduce pollution is to

• A) set uniform emission standards and require all firms to meet the standards.
• B) make the worst polluters shut down and go out of business.
• C) make them pay for the social costs of production and let them decide how to respond to the higher costs.
• D) provide firms and consumers with the information about the effects of their actions and encourage them to behave responsibly.

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Definitions:

Imported Cars

Vehicles manufactured in one country and brought into another for sale, often subject to import taxes and regulations.

Cultural Dimensions

Theoretical frameworks or models that describe various aspects of a culture and its values, especially as they relate to behavior in the workplace and society.

Power Distance

A cultural dimension that describes the extent to which less powerful members of society accept and expect power to be distributed unequally.

Hofstede

A theory proposing that cultural differences among countries can impact business and management practices, identified through research by Dutch social psychologist Geert Hofstede.