Emission controls on automobiles provide an example of a:
A)Pigovian tax on automobiles, based on how much they pollute
B)command-and-control policy to increase social efficiency
C)policy that reduces pollution by allocating resources through market mechanisms
D)policy to reduce congestion on urban freeways

Question

Quizplus · Accepted Answer

Emission controls on automobiles are a type of command-and-control policy, where the government sets specific regulations (such as emission standards) that must be met by manufacturers and enforced by regulatory agencies. This type of policy is used to increase social efficiency by reducing negative externalities (in this case, air pollution). Other options (A, C, and D) are not accurate descriptions of emission controls on automobiles.

Emission Controls on Automobiles Provide an Example of A