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.

---

Definitions:

GPS System

Global Positioning System, a satellite-based navigation system used to determine the precise location of an object or person on Earth.

GEO

Geostationary Earth Orbit, a type of orbit around the Earth that allows satellites to appear stationary relative to a position on the Earth.

LEO

Low Earth Orbit, an orbit around Earth with an altitude between 160 kilometers and 2,000 kilometers, used for communication satellites.

MEO

Medium Earth Orbit, a type of orbit around Earth typically used for satellites that provides broader coverage than low Earth orbit.