Which of the following is not a solution to the problem of negative externalities due to pollution?
A) Create private property rights.
B) Levy pollution taxes.
C) Create obligatory controls.
D) Reward the production of these products through subsidies.
E) Establish strict limits on the amount of pollution allowed.

Question

Quizplus · Accepted Answer

Rewarding the production of polluting products through subsidies would exacerbate the problem of negative externalities due to pollution, as it would encourage more production and subsequent pollution. Therefore, it is not a solution to the problem. The other options listed are all effective solutions to the problem.

Which of the Following Is Not a Solution to the Problem