Regulations to reduce pollution
A)cause pollution levels to drop below the regulated amount.
B)are typically a more costly solution to society than a corrective tax.
C)allow firms with the lowest cost to reduce pollution by more than those with the highest costs.
D)are a better solution for the environment than a corrective tax.

Question

Quizplus · Accepted Answer

Regulations often impose uniform standards that may not be cost-effective, whereas corrective taxes provide economic incentives for firms to reduce pollution at a lower overall cost to society.

Regulations to Reduce Pollution