If an objective of public policy is to allocate pollution to those factories that face the highest cost of reducing it, then that objective could be achieved by
A)a corrective tax, but not by regulation.
B)regulation, but not by a corrective tax.
C)either regulation or a corrective tax.
D)neither regulation nor a corrective tax.

Question

Quizplus · Accepted Answer

A corrective tax allows factories to decide whether to pay the tax or reduce pollution, leading those with higher reduction costs to choose to pay the tax, thus allocating pollution to them. Regulation typically imposes uniform standards, not considering individual reduction costs.

If an Objective of Public Policy Is to Allocate Pollution