Output restrictions or taxes could force people to _____
A)use the resource at a rate that is socially optimal.
B)use the resource at a rate that supports an unsustainable yield.
C)be more competitive.
D)overuse exhaustible resources.
E)overuse renewable resources.

Question

Quizplus · Accepted Answer

Output restrictions or taxes are designed to discourage overuse or depletion of resources. By increasing the cost of resource use, individuals and firms are forced to use resources more efficiently, which leads to a rate of consumption that is socially optimal. This means that resources are used at a rate that is sustainable and does not deplete them beyond their capacity for renewal.

Output Restrictions or Taxes Could Force People to _____