The government attempts to resolve negative externalities caused by automobile exhaust by:
(i) taxing gasoline to reduce the amount that people drive
(ii) building safer highways
(iii) setting emission standards for automobiles
A)(i), (ii) and (iii) are all used to reduce emissions
B)only (i) and (iii) are used to reduce emissions
C)only (ii) and (iii) are used to reduce emissions
D)only (i) and (ii) are used to reduce emissions

Question

Quizplus · Accepted Answer

Taxing gasoline (i) and setting emission standards for automobiles (iii) are direct methods to reduce emissions by either discouraging excessive driving or ensuring cars emit less pollution. Building safer highways (ii) is primarily aimed at reducing accidents, not emissions.

The Government Attempts to Resolve Negative Externalities Caused by Automobile