In Singapore, littering fines are strictly enforced. This is an example of a policy that
A)relies on moral codes to reduce the pollution externality.
B)relies on the Coase Theorem.
C)discriminates against foreigners.
D)relies on incentives to reduce the pollution externality.

Question

Quizplus · Accepted Answer

The policy of strictly enforcing littering fines in Singapore relies on incentives to reduce the pollution externality. People who litter face the consequence of paying a fine, which provides an incentive for them to avoid littering in the future. This approach relies on economic theory that assumes individuals respond to incentives and can be a more effective way of reducing negative behaviors than relying solely on moral codes or punishment. The policy does not discriminate against foreigners, as anyone who litters is subject to the same fine regardless of their nationality. The Coase Theorem, which suggests that private bargaining between two parties can lead to an efficient outcome, is not applicable in this situation.

In Singapore, Littering Fines Are Strictly Enforced